Last week, I posted about about shorting the USDCAD pair and I resume my bearish sentiment for the weeks ahead.
However, there is a clearer consolidation formation at starting at the beginning of this week and so I would be holding off on placing any trades until we receive a clearer signal on this consolidation.
Last week’s Commitment of Trader report showed a reduction in long and short positions especially on the short side signalling traders are still moderately bullish on the Canadian Dollar.
Given that there is an exit of both long and short positions, I will put this pair on hold for the time being.
Meanwhile, remaining bearish on the Euro did not turn out so well last week as it retested my second resistance level before selling off into Friday’s close.
I expect to keep scalping this pair to a minimum for next week continuing my bearish bias. Currently, I do not have any other price level placements as I await for for prices to normalize after China’s strong GDP and Industrial Production figures, which should be taken with a grain of salt.