The previous reaction to such a strong historical was seen in the chart I posted before, where I reccomended buying against support for a potentially very large move to the upside (which resulted in a home run trade, with enough returns for a year).
This is a terrific opportunity to get short the Euro , and long the Canadian, something which I think is perfectly aligned with the current fundamental landscape.
I'll enter with 3 positions, and attempt to ride the downtrend all the way down, booking partial profits on short term selling opportunities, while keeping the core position running, and I'd reccomend you do the same.
I favor an ATR based stop loss, against key levels. If interested in getting specific management cues and further add on opportunities, were this trend to reverse as depicted on my quarterly chart, contact me privately.
See my profile for details.
Aiming for retest of the lows before the rally or lower.
I hope everyone's in. If not in and don't want to miss out, like when I posted 2 hours ago, use a wide ATR stop loss (3 atr will never get you stopped if you're right)
This means the downtrend is very strong.
Will be ideal to add to or rejoin this trend.
Wonder if you can shed some light on this -
The Bank of Canada is the most likely of the major central banks to opt for negative rates this year or next, Marc Chandler, the head of foreign exchange markets strategy at BBH, told CNBC on Friday.
"I am not saying the Bank of Canada will, but that is the most likely candidate of those that are not there yet… I do not see this as anything but very low risk in the U.S.," he said.
(source : CNBC)
After Japan followed with the -ve interest rate, it caused the Nikkei to plunge more than 1000 points only to return back to the market thereafter shortly.
The confusion and euphoria is also impacting the USDJPY pair.
If -ve interest rate does happen to Canada, how would it play out against yen ?
Your thoughts is much appreciated. Thanks
If it crosses below that it'll fall below parity quickly.
It could have one more bounce up, the daily charts still look bullish, in the intermediate term.
Recently, fundamentals have been favoring a dollar selloff, and it's spreading to emerging markets' currencies, which were being sold heavily for the dollar before.
With this twist, and the lack of rate hikes until December, it's possible to see sideways or even upside movement in eurusd.
In a relative strength basis though, it's one of the weakest currencies, along with the dollar right now.
At least that's how I approach these longer term moves. Trying to bank and reenter often.