Forex Plays

EURUSD (spot)

This Forex pair once again completed an 11-month falling wedge (a diagonal pattern). Factor established a long position on Friday. I have low expectations for this trade – that could be a good sign. There is the potential for a significant bull trend based on the long-term chart.

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Canadian Dollars (CME)

This discussion will bring Factor members back to Jun 2017. The advance in Mar 2016 violated a multi-year parabola. Following the initial rally from the violated parabola, the market corrected in the form of a 13-month channel. The completion of this channel in Jun 2016 produced a 785 BP trading profit for the Factor Tracking Account.

Another channel is forming in the C$. This is a diagonal pattern, so I am cautious. Keep in mind that long CAD futures (the value of the CAD expressed in USD) is the same trade as short spot USD/CAD (the number of CAD that can be purchased by one USD).See the daily chart of futures and spot.

(Click on image to enlarge)