Forexpros Daily Analysis - 25/07/2011

by ForexAnalysis on Mon Jul 25, 2011 11:04 am

ForexPros Daily Analysis July 25, 2011

Today: Free webinar on ForexPros - Developing Traders State of Mind: The 5 Essential Skills to Peak Performance Trading

Expert: Rande Howell

Start: Mon, Jul 25, 2011, 10:00 EDT
End: Mon, Jul 25, 2011, 11:00 EDT

Developing an effective mindset specifically for trading is often the missing element in a trading plan and becomes the barrier to desired success. It is this blindness to the inner game of trading that stops the trader from having a breakthrough in achieving his potential. After endlessly crafting a methodology and platform into a trading plan that should give him (or her) an edge in the markets, the serious trader acknowledges that the problem in his quest for success is him (not his trading plan) and his psychology that actually puts his trading plan into play.

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Possible Rounded Bottom in GBP/CAD

The Canadian Dollar was very active last week, due to enormous amount of data released in that country. Even though a lot of it was positive, like a hint of interest rates increase in the near future, the Canadian Dollar remained largely stalled.

The CAD pushed the US Dollar to a new three-year low, at 0.9424, but in relation to most other currencies, it either consolidated or even lost some ground. In case of the GBP-CAD, for example, the price is in a congestion zone, perhaps best visible on the intermediate term chart.

This pair sold off recently, falling from 1.6144 to last week’s low of 1.5246. However, the most prominent feature of this chart is the consolidation contained between 1.5525 and 1.5246. In the process, the GBP-CAD has built a possible rounded bottom, a little complicated but unmistakable.

In order to confirm this formation, the price must climb above a strong resistance of 1.5525. Currently, the GBP-CAD is not far away and appears ready to test that level again. With the price already above the 100 SMA and MACD turning positive as well, a successful breakout above the resistance could send the GBP-CAD on a 300 pips rally.

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[You must be registered and logged in to see this link.] Trading analysis written by Mike Kulej for Forexpros.

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