khansalarehsan

A great opportunity for Shorting USDCAD

Short
FX_IDC:USDCAD   U.S. Dollar / Canadian Dollar
Here is a basic channel rotation. After visiting the upper band of the channel at the beginning of the year, it is time now to visit the lower band. I have a few reasons for that:
1) See the weighted average USD. It broke the wedge formation and currently visited the lower band of the wedge formation as well as the EMAs and Key Fibo level. I expect USD to get weaken in short-run at least to visit 50% Fibo.


2) CAD weighted average has been in a down trend for years but recently it made an up-trend channel and currently is trading around the lower parallel of the brown channel. If the current level of the resistance gets broken then nothing can stop it until it gets to the upper parallel of the rising channel .

Comment: See the breakout of the neckline of the inverted H&S in OIL market.
That means CAD will be stronger too as they are positively correlated. Hence USDCAD may go lower assuming USD remains constant.


Comment: I found this interesting too. This is CAD 10 years Yields. It is positively correlated with CAD. The higher it goes the stronger CAD will be. Here is the proof. Amazing correlation :)


See what happened a few days ago. A BOUNCE in CAD yields. That caused the recent strength in CAD. Just ask yourself if CAD yields rises where does it stop? There is almost no resistance for CAD yields in the near-run and that means CAD may rise for a while.
Comment: Is it a Flag formation?

Comment: Flag breakout and now see this weekly shooting star!

Comment: A pullback here?

Comment: I will exit at 1.3
Trade closed manually: Closed with 58 pips of profit.

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