Okay, here is why I decided to learn and study the COT. the pattern is a bearish bat pattern with a permissible tolerance of 3% of the B-point. Its a gorgeous pattern and could possibly go long term; however, i dont see it happeneing. The pattern is showing a sell and the COT which reports the big players positions a potential buy. so i would say approach the CAD with caution. while this pair transitions.
The COT report shows us that the Loonie Tune players are stepping closer to the Zero line again this week. Indicating that the Loonie could enter a Bullish trend. Now this makes sense as we're enteing the Summer Months here in the US and above the equator (or however you spell it) so travel is going to increase. Now, SARS 2 is running amuck and not being checked, the government here in the US is trying to tighten down restrictions, but i dont see the American People obeying such orders too much longer. I dont think we will ever truly know the mortality rate of SARS 2 in the US as they decided to provide hospitals with additional funding for SARS 2 related treatments so it seems like someone can test postitve but die from a carcrash and the hospital will code it as a COVID-19 related death to earn some extra money. I suspect this is happeneing all over the world and so i truly think the numbers are highly influxed. until the funding stops we will never know. so maybe in a few years when the extra funding has stopped we will see the true numbers and thats not including the shotty testing methods and the questionable regaents being used. with all that being said... travel is going to pick up LOL and its no seceret that the Canadians are exporting more than maple syrup. Their #1 export is oil and they sell the majority to us the US. Oil is struggling but is finding its footing. So, therefore, the Loonie will too.
here is the COT Data
the Commercials on the Producers and Consumers have reduced thier positions and have taken a decent step closer to the Zero line while the Non-Commercials are marching forward in stride as well.
the Comercial Net Data
the Current= 25,110 // the previous = 32,240
the non-commercial
current= (24,829) // previous = (33,138)
so, we can clearly see the sides are marching closer and closer to the Zero line; therefore the Loonie, will get stronger.
So, the pattern might be a good setup for catching some high risk manipulation pips or we could see this as relief of the commercials allowing PA to renter the PRZ for it to truly drive down. But, again with the summer here and travel picking up regardless of travel restrictions i see oil picking up and so will the Canadian Dollar.
The COT report shows us that the Loonie Tune players are stepping closer to the Zero line again this week. Indicating that the Loonie could enter a Bullish trend. Now this makes sense as we're enteing the Summer Months here in the US and above the equator (or however you spell it) so travel is going to increase. Now, SARS 2 is running amuck and not being checked, the government here in the US is trying to tighten down restrictions, but i dont see the American People obeying such orders too much longer. I dont think we will ever truly know the mortality rate of SARS 2 in the US as they decided to provide hospitals with additional funding for SARS 2 related treatments so it seems like someone can test postitve but die from a carcrash and the hospital will code it as a COVID-19 related death to earn some extra money. I suspect this is happeneing all over the world and so i truly think the numbers are highly influxed. until the funding stops we will never know. so maybe in a few years when the extra funding has stopped we will see the true numbers and thats not including the shotty testing methods and the questionable regaents being used. with all that being said... travel is going to pick up LOL and its no seceret that the Canadians are exporting more than maple syrup. Their #1 export is oil and they sell the majority to us the US. Oil is struggling but is finding its footing. So, therefore, the Loonie will too.
here is the COT Data
the Commercials on the Producers and Consumers have reduced thier positions and have taken a decent step closer to the Zero line while the Non-Commercials are marching forward in stride as well.
the Comercial Net Data
the Current= 25,110 // the previous = 32,240
the non-commercial
current= (24,829) // previous = (33,138)
so, we can clearly see the sides are marching closer and closer to the Zero line; therefore the Loonie, will get stronger.
So, the pattern might be a good setup for catching some high risk manipulation pips or we could see this as relief of the commercials allowing PA to renter the PRZ for it to truly drive down. But, again with the summer here and travel picking up regardless of travel restrictions i see oil picking up and so will the Canadian Dollar.