Forex Today

Trading currencies can be a lot of fun, not to mention profitable. And once you get familiar with the behavior of the different currency pairs, it becomes even more interesting.

The Canadian Dollar, or the Loonie as many people refer to it, is one of the most traded monetary units in the Forex market. The best online Forex traders have discovered that it acts in its own unique ways.

The CAD tends to fluctuate one third of the day, mostly throughout the American trading session. The remainder of the time, it trades around a particular level and is only affected by sudden changes i.e. crude oil hikes. When it hovers around a certain value, it’s often at support or resistance points.

Note that the Canadian Dollar has changed its pattern of behavior in the past year. It’s began to show some movement during the Asian session but the trading volume remains light. There are plenty of individuals trading the Forex after dark, although not as many as during the daytime.

It’s also worth mentioning that the Canadian Dollar responds rather well to positive economic reports out of the U.S. since it’s the country’s biggest trade partner. A positive drop in unemployment in the U.S. or a better than anticipated increase in consumer confidence often causes the CAD to appreciate in price.

And a word about trading at 10:00 am. It’s a very volatile time, and one during which many experts earn a lot of pips trading the USD/CAD.

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