USDCAD Lower
I like trying USDCAD lower here.
We had a very strong US CPI last week and the day ended in a shooting star for USDCAD at a covid pivot point from 2020 - i think this price action is telling us that the market is very long USD and very short stocks, which should limit future short term USD strength. We also have little USD data this week and i think this could lead to some unwind of USD longs.
CAD is very correlated to the US500 and i am expecting there to be risk on sentiment this week. the rate differentials are also moving lower suggesting that we could move lower based on how close USDCAD and the rate differentials have been recently.
We're also entering a period of seasonal risk on mood towards the end of the year which is typically a weaker USD as well.
sentiment for the pair is extremely high which is another warning signal for me.
Not trading/investment advise, feedback welcome!
We had a very strong US CPI last week and the day ended in a shooting star for USDCAD at a covid pivot point from 2020 - i think this price action is telling us that the market is very long USD and very short stocks, which should limit future short term USD strength. We also have little USD data this week and i think this could lead to some unwind of USD longs.
CAD is very correlated to the US500 and i am expecting there to be risk on sentiment this week. the rate differentials are also moving lower suggesting that we could move lower based on how close USDCAD and the rate differentials have been recently.
We're also entering a period of seasonal risk on mood towards the end of the year which is typically a weaker USD as well.
sentiment for the pair is extremely high which is another warning signal for me.
Not trading/investment advise, feedback welcome!
Note
moving take profit to 1.35165Note
exited the trade at 1.36196 ahead of the BoC meeting tomorrow as there is a chance they are dovish so no reason to hold through this for now.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.