CAD USD Currency Futures - Daily Chart 20th March 2009

Whilst the futures contract for the CAD/USD finished higher yesterday the move was less than convincing, with a shooting star candle being formed on the daily chart, and despite the closing price finishing above all three moving averages, this is a warning signal, given the length of the upper wick. In addition we also need to note th volume that has followed the move, which is the same as for Wednesday, suggesting that the volume of Thursday has failed to push prices higher, and that selling pressure is now coming into the market for the contract. It is also interesting to note that the high of the day failed to pierce the resistance level of February in the 0.82 region, and coupled with our analysis of the volume and spread of the candle using volume spread analysis, would suggest that we may see prices fall in the next few days, and continue the bearish trend of the lat few weeks for the currency future.

The latest currency news is updated three times a day on the TV video channel, and the economic calendar provides all the fundamental news for the day, along with the live news feed and live currency charts. Note today that it is a national holiday in Japan.

If you are considering trading in the forex markets it is essential to use the best trading platform and in my view there is only one platform worth considering, and that’s Metatrader 4.  As one of the most advanced, yet intuitive, trading platforms available MT4 offers sophistication combined with simple order entry, execution and stop loss management and can be used with a host of expert advisors.   Secondly, of course, it is so important to have an account with a reputable forex broker who offers ECN execution -  in other words your trades are entered automatically into the market with no dealer or broker intervention, a huge benefit which allows you to scalp or trade in your preferred style, with no worry of slippage or of broker intervention on trading positions.

The MT4 platform from ODL offers all the above with the choice of either mini or standard trading accounts so you can begin to trade with as little as 500 euros so why not download your free demo copy of the metatrader 4 software by clicking on the following link – download metatrader free -  and get started today, and don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Aussie Dollar - Daily Futures Chart 20th March 2009

Yesterdays wide spread up candle added to the bullish tone following Wedneday’s wide spread up bar, which reacted to the FED news in the evening along with many other major currencies around the world. With the futures price now having cleared the resistance level at 0.678, this should provide support for a move higher in due course with all three moving averages turning higher. The only slight concern in the candle from yesterday, is the relatively lareg shadow both top and bottom which would suggest some indecision entering the market, and therefore I would suggest a wait and see approach before buying into the market. As always I would use the hourly chart for your entry and exit points.

Looking at the volume, as we would expect in any move up this is now increasing suggesting the move has momentum behind it, and is therefore likley to continue for some time, with any turning points being identified using volume spread analysis techniques. The latest currency news is updated three times a day on the TV video channel, and the economic calendar provides all the fundamental news for the day, along with the live news feed and live currency charts. Note today that it is a national holiday in Japan.