The Canadian Dollar Price Outlook: Loonie Drop USD/CAD Pop to 1.40 Test is a fact! After the stunning run of the Canadian Dollar, it’s time to face reality.
The USD/CAD Rallies Again!
Since I began writing this series back in January, the Dollar has lost more than half of its value! In a flash, the USD/CAD Rallies Again!
If you’re unfamiliar with the currency, you are definitely in for a treat. Currency is a measure of the value of one country’s currency against another. Think of it as a rough index for the strength of the exchange rate between two nations.
Consider the Canadian Dollar, a very strong currency. It’s trading extremely low against most other major currencies. For example, in the past month, the Canadian Dollar dropped by less than 3% against the Euro and lost just under 15% against the US Dollar. As such, if you were to buy one Canadian Dollar, you’d be sitting on one-fifth of a US Dollar.
Even though the Canadian Dollar has performed so well, the Yen, or the Japanese Yen, still remains a strong currency. Its weakness against the Dollar was due to political unrest. If you were to put your Canadian Dollar in a Japanese Yen account, you would be sitting on nearly four US Dollars!
So let’s look at where gold prices have been in relation to gold prices during the recent run-up. Remember when the gold prices were soaring? This is where the Canadian Dollar Value Outlook: Loonie Drop USD/CAD Pop to 1.40 Test comes into play. Now, for the first time since 1998, the US Dollar continues to have higher prices against gold than the Euro.
In fact, gold prices are now higher than ever before in history. And this is just the beginning!
The term ‘currency trading strategies’ can often sound overly complicated, so many traders are left wondering what a Forex Strategy is. I suggest that currency trading strategies doesn’t mean the same thing as an individual Forex trader strategy. An individual Forex trader strategy is an effort to identify the price to trade for.
Individual Forex strategies should be relatively simple and easy to find. If the currency prices continue to climb, and then continue to decline, it’s very likely that the individual Forex trader will experience a huge loss.
Even so, there are some strategies that would allow investors to buy up the currency from a dip, then ride the currency and prevent large losses. A good way to do this is to hold a long position in the currency (a “longon” position) and then sell to sell the currency back down to the short position once the currencies break above the target level (a “shorton” position).
Currency trading strategies are ideal for potential clients who have little knowledge of currency trading. If you know the basics of price discovery and currency trading, and you’re willing to do the work, then you’ll have more success.
We have a bunch of different forex strategies designed to help you learn currency trading in the fast paced and ever changing world of currency trading. So get started right away, just take the first step and you can see why we are the number one Forex newsletter selling service!