akyong

Why You Should NOT Ignore Fundamentals

FX:USDCAD   U.S. Dollar/Canadian Dollar
Many technical traders simply disregard the fundamental aspects of trading, and simply conclude that a technical price chart tells all the 'story' of a currency pair.

If you are currently still have this thought and belief, I STRONGLY urge you to have an open mind and START doing some research on the importance of fundamentals in trading.

Technical wise, we have a inverse head and shoulder pattern on USDCAD             , and price has indeed broke the neck line.

However, when the BOC             Rate Statement was released yesterday, the overall tone of BOC             was hawkish and optimistic. What followed through was a strengthening of CAD.

Knowing this, could you have avoided trading the head and shoulder (technical) setup? Absolutely! You would have avoided a losing trade!

Having said that, I am not saying that fundamental is the king here; but in order to have a comprehensive and holistic picture of what is happening in the market, and what is moving the currency, it is VERY IMPORTANT to understand the fundamental and sentiment aspects of trading as well.

Never stop learning!!
RikKieChong
a year ago
(1) US oil closed highest since December.
(2) Hawkish and optimistic Canadian central bank.

From technical side, downtrend is formed. What do you think?
+1 Reply
akyong RikKieChong
a year ago
agree
Reply
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