A very good time to update the short-term flow setup for CADNOK after such a brilliant squeeze. For those tracking the 2020 Macro flows:
This week we have a simple technical move in play. A textbook case of "Apple in the worm" as it seems to me a poor choice of the moment for buyers to continue the advance. Extending the characteristics position (= swing...
CADNOK is on a strong 1D Channel Up (RSI = 69.678, MACD = 0.025, ADX = 55.588, Highs/Lows = 0.0757) that started on December 30th when the price touched the 6.72000 Support. It is well above the MA50 and appears to be repeating the previous bullish leg that rebounded on the 1D Support. The pressure zones are symmetrical as seen on the chart.
This Channel Up...
A good time to map the strategy and flows for CADNOK as we approach year-end. As you will have noticed I am tracking for a major pullback in the cross over the first half in 2020, this is coming from large macro forces at play. Central bank coordination has opened up the opportunity for NOK to outperform CAD.
Firstly the reflation theme via USD devaluation is...
I've spotted late this alternate ABCD pattern. Alternates are any pattern where AB=CD. There are the standard ABCD patterns that are well known.
I'm exploring and learning from alternates to see what degree of corrections to expect. This set up is therefore observational only.
CADNOK has make some interesting trend switches, that may afford trading opportunities.
I explore the probabilities.
This is not a recommendation to trade. Your losses are your own.
I show a rare trend switch on CADNOK for the south on the daily time frame. This usually means business. CADNOK is a very violent pair to trade but potentially one that can deliver. Wide stops and big account sizes are needed.
The pair has been trading within a 1D Channel Down pattern (MACD = -0.003, ADX = 20.845, B/BP = -0.0351) with the neutral RSI, Highs/Lows indicating that it is near a Lower High level, hence an optimal short spot. As seen on the chart the High - Low sequence has been fairly straight forward and although it may hit 6.4600 again, the current level offers a...
=> This week we have BoC on deck with a widely anticipated rate hike. The sales and consumer prints last week came in softer than anticipated and we see this as a great valuation driven pullback.
=> Here we are targeting the recent highs with stops at the lows. From a technical point of view we can see the early longs had their stops run on the data pullback.
=>...
The last TP = 6.0866 hit and CADNOK has since rose within the long term 1W Channel Up (MACD = 0.038, Highs/Lows = 0.0111, B/BP = 0.0930) which is now pulling back towards its potential Higher Low (RSI = 53.641) near 6.27730. That is carried out within a 1D Channel Down (green channel, Highs/Lows = -0.0262). Once the low is made, we will be going long, TP = 6.500.
CADNOK is on a common Channel Down on 4H (RSI = 37.434, Highs/Lows = -0.0223, B/BP = -0.0495). It is now looking for the next Lower Low but is near two important 1D support levels (6.12584 and 6.0866). If they break then 6.04 will be the Lower Low. Our TP is the 2nd support = 6.0866 and we will pursuit 6.0400 with SL brought down on profit zone.
