For best Forex trading returns always try to pair the weakest currency with the strongest currency. Today that would mean shorting the EUR-CAD. EUR has been one of the weakest of 2010 and the CAD one of the strongest.
The EUR-CAD on the multi-year monthly chart has broken the most recent major low by closing daily below it’s 11-30-07 close and below 3-31-06 close double bottom of about 1.3500. If April month end closes below the above mentioned double bottom the next stop could be the next major double bottom monthly close low of about 1.2900 reached on 9-29-2000 and 7-31-2001.
I suggest layering in over three separate short positions only after a lower April monthly close of below 135.00
Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.