Canadian dollar crushed as oil prices tumble
One of the relationships I cover in my free forex webclass is that between oil and the Canadian dollar, and it has never been more important following today's dramatic price action for both crude oil itself and broad market sentiment. So, with equity markets and oil in free fall, the CAD/JPY pair has delivered some wonderful trading opportunities, along with several others in the Canadian dollar complex. The combination of risk-off and oil has driven the pair lower still, following the gapped-down open under heavy selling as seen on the daily chart. Over the next few days it will be a question of watching the related markets of oil and equities for any recovery in the Canadian dollar.
The Canada-Oil Relationship: A Deep Dive into Economic Ties and Currency Market Impacts
Canada, often dubbed the "Great White North," is not just known for its vast landscapes and maple syrup—it's a powerhouse in global energy markets, particularly...
NZD/USD strongest this morning
As I mentioned yesterday, history will judge whether this week's action by the FED was prudent or foolish, but what cannot be denied is the effect on the US, which is a free fall and looking to move towards the 96 price point. This makes today's non-farm payroll release even more important, as a strong number should give the USD some support. The weekly chart for the DXY shows the extent of this week's move as well as the downside levels ahead.
And it's the nzd/usd which has been the strongest of the majors this morning, as we can see on the chart above. A wonderful trend higher supported with the trend dots and trend monitor indicators.
The New Zealand Dollar (NZD): Economics, Key Drivers, and the Carry Trade
The New Zealand dollar (NZD), often nicknamed the "Kiwi," is a commodity-linked currency highly sensitive to global economic forces. In 2026, NZD trades around 0.60 USD, influenced by the Reserve Bank...
Weak AUD/JPY signals return to risk off
It's been a day of weakness for the Aussie yen as risk-on sentiment evaporated once more, with markets remaining fragile and nervous as each day reveals fresh news on the current virus sweeping the globe. As a barometer of risk the AUD/JPY is always one currency pair that reveals this sentiment clearly, with the Aussie dollar considered a risk currency and the Japanese yen a safe haven. This weakness was signaled earlier in the week with the failed effort to rise on high volume and now followed by a bearish engulfing candle.
AUD/JPY: The Ultimate Risk Sentiment Barometer in Forex Markets
The AUD/JPY currency pair is one of the most widely watched "risk-on/risk-off" indicators in the forex world. Often called the "risk barometer" or "carry trade proxy," AUD/JPY moves in near-perfect alignment with global risk appetite. When investors feel optimistic and are willing to take on risk, AUD/JPY rises sharply. When fear returns and risk aversion...
Great Volume Price Analysis Lessons On The CAD/JPY
Some classic price action on the CAD/JPY daily chart, and in particular, several volume price analysis lessons to take away. First, note the volume anomaly on the wide spread up candle. Volume is average, so the market makers are not participating, as the trap is set. Clearly, volume and price are not in agreement, and this is a sure signal of weakness ahead.
The price waterfall is developing as expected, and note the rising volume in a falling market, confirming the strength of the trend. Finally, in the last few days, we have had a two-bar reversal on good volume, with the currency pair looking weak. And remember, the Canadian dollar is closely associated with oil and with the recent fall in oil prices, this has also been reflected in the currency and one of the topics I cover in my free forex webclass.
Volume Price Analysis (VPA) 101: A Beginner's Introduction
Volume Price Analysis (VPA)...
Crossover session traps
The crossover sessions in forex occur when trading in one timezone closes and another opens and can be a very dangerous time for traders. Why? Because this is where insider traps are set. The London open always is a fertile ground and there was a great example on the usd/jpy.
Heavy buying in the pair on the previous day resulted in a nice move higher in Asia with the pair moving into consolidation ahead of the London open.
Prior to the open the pair started to move higher on reasonable volume but reversed lower at the open on high volume until the hammer candle, again on high volume pushed the pair back towards the consolidation (the yellow line on the chart).
Session Crossover Traps: How Market Makers Catch Unwary Traders (and How to Avoid Them)
The session crossover — the moment one major trading session hands over to the next — is one of the most dangerous times of the day for...
