So I bought some cheap 200-day call options already at the money just before the BoC announced they were holding the rates steady of 1.75%. This is against a US fed already doing QE and cutting rates will prove bullish for the CAD. We obviously will see with time, but this market looks good for commodities and a rising CAD.
Note: If the BoC does cut rates in the...
First of all this pairs is on a DOWN Trend but what makes it more valid to me is the fake break out that happened last Friday.
That fake break is telling us that JPY is much stronger than CAD right now.
Second we saw oil making new lows last week which will continue to do so at least 2-3 more weeks.This will influence CAD prices to make new lows
Use this as a guide to develop your own setup
Main Items we see on the 4hs chart:
a)Price Broke out the Ascending Trendline
b)After the breakout, we saw a pullback to the Trendline with clear rejection candlesticks
c)Currently, we can see a decreasing momentum on the bullish movement
d)Based on that and the Bearish Signals we can see on Higher Timeframes we...
This trade is about a long term hold based on Canada see good things happen after there next election, so it is a post election hold, so keep exposure small and hang on, I have structured it with two buy in levels, depending on the momentum of the market at the first buy zone I may let it go to the second before doing the trade
The price action was moving within a symmetrical triangle and after hitting the support it made double bottom at the support of triangle.
In the meanwhile the price line had also completed the formation of gartley and entered in potential reversal zone moreover the volume profile is also showing a very low interest of people to trade below that area.
DXY is the key parameters in Dollar strength, after 2 weeks, it is under two sides! fall or return? market is awating to fundamental news.
But if it falling to under support zone, gold increase very high!
Looks the triangle broke and that trend line as well. No real follow through yet, so it could bounce up a bit first. If this happens, it should not break the red zone. That would complete a retest of the triangle. A break of the green support, should increase the chances a lot of dropping towards the 1.330
A potential breakout to the higher 1.36 levels are a possibility. We will have to see a clean breakout of the 1.35200 Resistance to spike us to the 1.36 levels. We are going to hit a Fibonacci Level regardless, so if price doesn’t hit the 61.80% Fib we can see it fall with the purple trend line to bounce off the 50% Fib level.