Today I decided to do a quick analysis on some Daily charts of the EUR/USD and USD/CAD. I know my friend Luiz is very much interested in these bad boys these days… they are nice and can move quite fast. I have traded forex in the past and after a great extent of research I found that the 21/34 ema cross over works quite well to track long trends. Please note that the 21 and 34 are also Fib numbers. The second tool I use a lot not just for Forex but also for stocks are channels, they are simple and effective. Here’s a recent example of a trade where I exited because it touched the upper channel. Now, enough talk, let’s look at some pairs - comments on the chart:

Euro/Usd - Daily Chart - please click on the chart to see original image

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Usd/Cad - Daily Chart - please click on the chart to see original image

Excellent example here on the use of channels…

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Thoughts?