If you are new to Forex trading, then probably the best place to start is the Canadian Dollar Price Outlook: USD/CAD Re-Tests Fibonacci Resistance. That’s a very easy way to get yourself set up in a profitable position right from the start. There is no reason why a beginner should get behind.
It’s one of the best currency pair to trade for a couple of reasons. Firstly, the price of the Canadian Dollar has been closely tied to the USD lately, which makes it a good buy and sell opportunity. A dollar is worth just about what you pay for it, so it’s a good deal when you purchase US dollars.
We mentioned that the Canadian Dollar Price Outlook: USD/CAD Re-Tests Fibonacci Resistance, but let’s back up a bit. How would you go about finding out if it’s a good buying opportunity? Well, if you know how to use indicators, then there’s no need to learn the technical side of things. All you need to do is a little analysis and it’s as simple as that.
One way to figure out if a market is moving in a good direction is to simply observe the current price action in the chart. If you don’t have any indicators at your disposal, then you can always take a look at historical prices and charts. At times like these, many indicators and tools will help you understand what’s going on in the world of currency trading.
The simple price charts that are readily available online will help you keep track of the price action in relation to the resistance and support levels. That’s where you’ll find the threshold between a long and short position.
Those levels are often called Fibonacci retracement levels and they point to the strongest support and resistance levels in the market. How to look for these levels is a little complicated, so let’s look at a sample example. Take a look at the daily chart on the right.
When the market reaches the support level of the triangle with the yellow line, the current market price is above this level. So, if you’re buying the currency, then you’d expect that the price will continue to increase as the market continues to reach the support level.
The resistance level we looked at is usually at the top of the triangle and is usually up at the top of the price chart. If the market keeps moving above this level, you’ll be able to tell that the next level is around the upper left part of the price chart.
A perfect day for a small profit would be the time between the two triangles. If the market were to continue moving above the resistance level, you’ll know that the next level is around the upper right.
You might see a strong bull market right now, as the Canadian Dollar Price Outlook: USD/CAD Re-Tests Fibonacci Resistance continues to move above the yellow line. This will help you determine if you’re buying or selling in the market. If you’re not afraid of making mistakes and don’t mind taking some losses, then you can definitely go ahead and put your money in.
Trading with the right mindset will give you the ability to take advantage of the up and down movements of the market. If you watch the market closely, you’ll find out what the market is trying to tell you. and what it isn’t.
Let’s take a look at another example, which is an actual candle circle I’m following right now. This is a trend line that looks like a pretty straight line, except it’s not. and we’re trying to figure out if it’s support or resistance.