POSITION TYPE: SHORT
STOP LOSS: 1.34200
TAKE PROFIT: 1.29500
SHALL THERE BE ANY UPDATES I WILL UPDATE THEM IN THE THREAD. BELOW YOU CAN FIND THE EXPLANATION BEHIND THIS TRADE SETUP
The main chart shows the price confined in a upward slopping channel on the weekly TF which has been respected on multiple occasions. At the moment we could see that the weekly candle not only breached the lower end of the channel but also close below the crucial dynamic support of the weekly 50 EMA!. This suggests that the price is ready to potentially head down towards the 1.29500 level where another concrete upward is presents.
Furthermore, the sanctions imposed by U.S on iran and further ongoing dispute has already made WTI price rise higher. Further tensions are to be expected in the future which would potentially make WTI jump higher. CAD is strongly correlated with OIL prices and any move in the OIL prices would move the LOONIE in the same direction. Additionally The USD weakness will likely gather pace in the coming weeks as prospect on economic slowdown and rate cut has hit the greenback very bad.
Therefore we have at the moment both technical and fundamental picture on our sides. as the days go we will see the news develop further and see the a clear picture.