Well this chart caught my eye quickly when I was flicking through the charts earlier.
An Asia session breakout occurred on the EURCAD market – which is highly suspicious, but by the time I got to the chart the Asia session breakout, had faked-out.
This is classic, predicable, repeating price action I’ve seen time and time again. When there is a spike up in the Asia session that fails the market will usually move aggressively in the opposite direction of the fake out during the money sessions (London, US).
Price is also extended very far from the mean, and reacting with a minor weekly resistance level, which are two more bearish clues.
If this market is going to correct now, it’s most likely going to be an aggressive drop.
Let’s see how it plays out…
Johnfaith
I was in this market for about 146 pips before the CAD news that went against the direction of the pair, but I decided to remain in the trade, now is coming back to the direction.
I must say dale, I love your market report.I use line chart to get my support and resistance level, which corresponds to your, good work
thanks Dale Wood
Al
The Novice Traders will unfortunately buy into that trap perceiving the market will go higher, there
by handing over their money to the smart money people who are taking the market down & who are on the other side of their trade.. What we see here is a perfect example of an imbalance between supply & demand..
Replying to: Al
Steve Epperson
Well put, Al. Thanks for your insight. hope you make a ton of money this week. Thanks to Dale for the analysis.