The charts below are a Canadian dollar vs. USD and the US dollar index
I wanted to dedicate this post to point out how the market can
totally be the boss and highlight that some reliable support points or
resistance points can be invalidated with the events that go on and even though
for the days leading up to August 14 I was correct I had to give back some
profits and I am a more cautious bull and recent events have prompted me to
possibly change my strategy.
From my earlier post there were some charts of this Canadian
dollar trade that showed an advantage in scaling in where risk is managed by
having a very light position and then adding to it gradually and if a shock
type of move would occur it would not destroy the trade too much.
I was able to enter below 1.26421 on average and the higher
lows began to show up little by little and the zone of gains was where I did
not continue to add to the position it then went above 1.27648 before coming
down quickly
the violent move down was 326 pips [relative top to relative bottom]. The rate of this rebound is much faster and
more uniform in terms of seeing consecutive bullish candles the breakouts are
occurring with more enthusiasm
I'm willing to go along with an idea of this pair below 1.25
or even less. That would mean that I can
get some protection, but that is a worst-case scenario so now the next level of
focus is seeing where the resistance points manifest in the chart above current
price of course there is a very powerful resist point at the top of where it
says zone of gains partial entries.
The series of lower lows were a little more controlled, that is what the LL means, so
the bullish case for this pair will be tested and there is a lot riding on monetary policy
from the Federal Reserve and all the economic data coming out in the next few
days and weeks
The chart here broke down to newer lows, which I asked the question as far as is this a mini-climax in selling strength.
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