'The short trade I called yesterday is working out great. However this doesn't look good to me yet for a break out of the channel. Manage the short closely next week and don't be surprised if we see another leg higher.'
I believe we are in an expanding but it is too soon to tell, what looks obvious to me is that we need a pullback soon.
Keep in mind that the CAD pairs most likely will go hand in hand.
I want to make a note about some questions I received recently, they were good questions but hard to answer.
Technical's by means of show a big deal of market dynamic and future movements, Those who understand it also know where this comes from. Emotions are based on expectations, fear, biases etc. So those who say fundamentals don't matter just don't have the knowledge to understand the fact that it matters. Which is okay and not worth discussion. All variables that are driving emotions are driven by fundamentals (expectation of what will happen, fear for what might happen, etc).
is relatively simple if you are dedicated and are willing to invest time and effort. In the end it is an equation of probability and risk/reward.
But if you want to increase your success ratio be prepared to study more complex material. The global economy is facing some tough issues and the 4 major asset classes will tell us a big deal of what to expect and when. Forex is one of those asset classes and the Dollar is still the world reserve currency. On the other hand CAD is very connected to Oil whether someone believes it or not. are another player in these 4 major asset classes. What I try to say is understanding fundamentals is different than understanding the news. (Buy today's news and you are selling tomorrows newspaper).
News is about others trying to make sense of it all, therefore only the best make money and the rest loose when trying to make sense of fundamentals. But better believe me that the top players in the world make money by trading fundamentals.
So if you guy's PM me with questions about fundamentals it is almost impossible for me to explain that in a simple message or a post on Tradingview.
Just realize that things are connected and that's one of the reasons is such a great tool, it is based on mass behavior. So if you want to play it simple, study . If you want to step up your game you need to invest a lot of time in understanding the whole dynamic.
I will definitely try to help you with this but it takes time and a lot of effort. I will notify you all on Tradingview when my webinars will start.
Have a great day, safe trades and keep an eye on USDCAD when trading the next big move in any other CAD pair. Because longer term we are looking for another leg lower for USDCAD on the daily time frame.
The arrows are indicative.