- Yesterday's equities sell-off held around S&P at 1050
- Overnight Asian market seem orderly, not every market followed through, but most did
- European markets down move were slow overnight until US open
- But perhaps most importantly, EUR/USD made a higher low with an increasing COT
Basically, as much as the sell-off tries to scare off people, the markets don't seem to be moving in unison. So it would seem this move (in equities, thus inverse USD) is still a bear trap in an intermediate term bull rally. Plus this daily chart, Figure 1, for picking USDCAD specifically. [caption id="" align="aligncenter" width="570" caption="USDCAD daily chart"][/caption] And this 4-hour chart for trade execution.
[caption id="" align="aligncenter" width="570" caption="USDCAD 4-hour"]1[/caption] Size of trade is 1000 unit. Risking about 0.05% of capital with a hard stop at 1.077. Anything above 1.070 would put me on alert though. Coincidentally, I first got into the forex market by studying the loonie. Let's see how this first trade performs.