Here we can clearly see that the market has reached a very strong area of resistance. You can tell by the huge amount of rejections from that area (shown in graphs with arrows). So we can expect a strong pullback from this area. We have to be very smart on where we place our stop loss, because the market may push to the upside, activate everyone’s stop losses, before dropping. Thus I encourage everyone to use smaller lots for this trade with a wider stop loss.
Another reason I’m strong on shorting CAD is due to the news:
1.“Top-performing hedge fund is shorting Canadian banks on all the usual suspects”
2.“80% of Canadian companies aren't generating enough cash to support their businesses”
business.financialpo...ada-banks-on-housing
3.'Everyone's walking on eggshells': Short interest in the big Canadian banks now stands at US$11.39 billion
business.financialpo...-paying-a-high-price
On the 4H timeframe, upside trendline has broken down, and is about to activate a meltdown.
Trade with care
Another reason I’m strong on shorting CAD is due to the news:
1.“Top-performing hedge fund is shorting Canadian banks on all the usual suspects”
2.“80% of Canadian companies aren't generating enough cash to support their businesses”
business.financialpo...ada-banks-on-housing
3.'Everyone's walking on eggshells': Short interest in the big Canadian banks now stands at US$11.39 billion
business.financialpo...-paying-a-high-price
On the 4H timeframe, upside trendline has broken down, and is about to activate a meltdown.
Trade with care
Trade active:
On the move! (4H Chart)
Trade closed: target reached:
That was quick!