MeetPips.com

Earlier in the day, I noticed that there was a bearish flag on the USDCAD 1-hour chart so I thought I'd just wait for the breakdown and enter the trade probably during the end of the Asian session. The pair did break down during the first half of the European session. Most majors rallied against the greenback too but then they seemed unable to sustain their rallies. In particular, the EURUSD simply spiked up then crashed down. I took this as a sign that the breakout was probably a fakeout...

But clearly, it wasn't!A short around 1.0125 would've been nice. But had I traded that pair, I would've set my profit target at the bottom weekly ATR of 1.0065 and, as you can see from the chart, the price didn't dip that low. It looks like the pair is retracing now... Another chance to short? Sentiment for the commodity-based economies was highly bullish yesterday after officials from both Australia and Canada churned out hawkish remarks. An RBA official mentioned that rate hikes could continue while the Canadian Industry Minister said that the appreciation of the loonie is no longer hurting their exports so much. In fact, the Kiwi was even able to join in the rally! Maybe more risk appetite is in store for today...