About meI am a stock & currency trader. Using economic research, market sentiment and economic forecasting, I identify key fundamental vehicles for investment and then apply a propriety approach to participate in the financial markets.
CAD: I am speculating that CAD's CB will be hawkish whether or not hey raise rates today (December 5, 2018).
Given the recent change of stance in US Fed's Powell from a hawk to a dove, and given the trade idea that CAD's CB might be hawkish in tone today even though they may keep rates the same, I think this makes a good short set-up.
USDCAD is also overbought ...
Looks like China versus the emerging markets is making another come back! First it was 2013, then again it was about 2016 then is based out and rallied in 2017. Now, here we are again at the same old trendline at the end of 2018 and beginning of 2019. The Shanghai Index is also at an all time, weekly/monthly support level.
Could something about China be ...
A hawkish Fed man, Powell, switched from Hawkish mode to, suddenly, dovish mode. It is a surprise and a clear signal to us that they may not raise rates in December. The resukt was that the US stock market popped us after basing at a long-term trendline. The dollar fell. EURUSD rose with force. This won't be any false breakout.
IHS pattern: EURUSD shows a potential change in sentiment underway; however, for currency pairs, that this potential change in sentiment will be a shift in extremes of sentiment toward one currency relative to another.
Rambling Thoughts: I am certain about where the US Fed is going, but I am not certain about the UK's deals.
Weekly rejection of resistance zone shows aligns with the above. I think it is time I short the pound against the dollar now.
Pound may be "undervalued" but relative to what? Is it going to give you value? Probably not. So, let's get technical.
Weekly chart bouncing from resistance. GBP relative to the USD look like it will get weaker.