1. Hugh impulse break above major trend line upward.
2. With this energy upward it has pushed the RSI to a NEW HIGH with regard to being overbought.
3. What goes up must come down :)
I think it's a great Risk to possible reward play here....
Kommentare
pascalde-aguiar
⋅
Agreed !
I don't know how long USDCAD can stay overbought like that on the daily weekly and monthly charts !
About the BOC decision, well... it's a shot term plan to stop the inflation but it's not great really and they cannot do it again soon.
There's a very interesting article on yahoo finance called "Canadian Rate Cut: a Double-Edged Sword?" It explains how damaging
this rate cut is for the Canadian financial system.
I feel that it might retrace a bit higher... but the RSI never stays overbought forever and on such a big scale the effect of a correction
would/will be extremely visible to say the list ! As you said what goes up goes down and the freak movement created by the rate cut
might just see its reversal. Beside traders were already about to send the USDCAD lower when they took that decision.. many were planing on shorting
Coincidence ? I don't think so.
Also the feds might just decide to take action against the dollar inflation too. There's a speech on Wednesday.
Good night and good luck ;)
Dale_Ansel
⋅
Nice commentary, very informative. Thanks for commenting!
I don't know how long USDCAD can stay overbought like that on the daily weekly and monthly charts !
About the BOC decision, well... it's a shot term plan to stop the inflation but it's not great really and they cannot do it again soon.
There's a very interesting article on yahoo finance called "Canadian Rate Cut: a Double-Edged Sword?" It explains how damaging
this rate cut is for the Canadian financial system.
I feel that it might retrace a bit higher... but the RSI never stays overbought forever and on such a big scale the effect of a correction
would/will be extremely visible to say the list ! As you said what goes up goes down and the freak movement created by the rate cut
might just see its reversal. Beside traders were already about to send the USDCAD lower when they took that decision.. many were planing on shorting
Coincidence ? I don't think so.
Also the feds might just decide to take action against the dollar inflation too. There's a speech on Wednesday.
Good night and good luck ;)