Foreign exchange rate volatility remained fairly intense last month. Interest rates were calmer but here too tensions have increased, as financial markets give more thought to when some of the extraordinary loosening of monetary policy seen over the last year will start to be reversed. On the foreign currency front,…
The Relationship Between Crude Oil And Cad
Historically speaking, crude oil and the Canadian dollar have had a very strong relationship, most of the time, the two assets having a high degree of correlation. This can be explained by the fact that Canada holds the second biggest oil reserves in the world after Saudi Arabia. Moreover, a…
The Psychological Utility of Technical Analysis
Technical analysis is sometimes studied as if it contains a grain of secret knowledge or portrays an intrinsic truth about currency movements. Often it is said that a specific chart formation will produce a specific price movement. Technical analysis does nothing of the sort. A chart is a reflection of…
Correlation in the Forex Market
Statistically speaking, correlation is the measured relationship between two units over a series of time. Correlation is measured on a range of -1 (perfect negative correlation) to 1 (perfect positive correlation). A positive correlation implies that the two units move in similar directions, the higher the correlation the closer and…
The Art of Contrarian Trading: Volume, Consolidation, Distribution, Headlines
Traders are at a stage in the market cycle that is one of the most frustrating to deal with, and where the most money gets squandered trying to work things out. This stage is when we go through a phase of consolidation, moving sideways consolidating the recent moves made, while…