another perfect setting on usdcad, important correction imminent
we have another perfect setting on the weekly time frame for usdcad, a 1,2,3 lobes on the MACD (can be interpreted as a perfect 5 waves setting). the DMI is low to its extreme and cannot go any lower without an important correction on usdcad.
if the differential curve on the DMI increases while the DI- increases, it will mean that this won't be a correction but a new trend and therefore usdcad could collapse very big.
usdcad has been going up very convincingly recently putting buyers in an excess of confidence, and surprisingly every intraday up moves have been canceled very sneakily since a couple of days. this means one thing: the market is in a process of trapping a lot of buyers hypnothized by their excess of confidence, when they will realize that usdcad is going down it will be too late, they will panick, triggering a cascade a short on usdcad to protect their longs and amplifying the collapse on usdcad.
moreover the seller/buyer bias, even if is still in the favour of buyers is decreasing by ~1% almost every day, it is a matter of time before we reach a majority of retails long on this pair, then the market will joyfully destroy the accounts of this majority by hammering usdcad down
if the differential curve on the DMI increases while the DI- increases, it will mean that this won't be a correction but a new trend and therefore usdcad could collapse very big.
usdcad has been going up very convincingly recently putting buyers in an excess of confidence, and surprisingly every intraday up moves have been canceled very sneakily since a couple of days. this means one thing: the market is in a process of trapping a lot of buyers hypnothized by their excess of confidence, when they will realize that usdcad is going down it will be too late, they will panick, triggering a cascade a short on usdcad to protect their longs and amplifying the collapse on usdcad.
moreover the seller/buyer bias, even if is still in the favour of buyers is decreasing by ~1% almost every day, it is a matter of time before we reach a majority of retails long on this pair, then the market will joyfully destroy the accounts of this majority by hammering usdcad down