CAD Crosses
At one point in time last year, my sentiment on the Loonie was bullish. My thinking on that was that while Canada lagged its neighbor to the south in economic progress post-global financial crisis, it was basically following a modestly improving trajectory over time. Well, that was before oil prices tanked, and now my sentiment has changed, at least in the short term. Lower oil prices have naturally put some pressure on certain Canadian petroleum operations, and a shakeout of nonproductive operations has begun, some of which will fall by the wayside, after which I imagine oil prices will stabilize and/or OPEC will adjust production targets to minimize U.S. and Canadian production from some of the more expensive wells, keeping that oil out of the pipeline ... . This situation led to a surprise rate cut by the BOC and another cut is certainly not out of the question. http://business.financialpost.com/20...-says-td-bank/
Nevertheless, EUR/CAD (at least), has continued its bearish decline, so I am going to continue to short the pair at price extremes:
Ordinarily, I short the pair based on the previous day's high/lo (using Fib Retracement Pivot Points), but it may be more productive to wait for 5-10 Day extremes instead, since there has been a bit of whipsawing in the pair in light of oil price changes and, of course, Grexit ... .
At one point in time last year, my sentiment on the Loonie was bullish. My thinking on that was that while Canada lagged its neighbor to the south in economic progress post-global financial crisis, it was basically following a modestly improving trajectory over time. Well, that was before oil prices tanked, and now my sentiment has changed, at least in the short term. Lower oil prices have naturally put some pressure on certain Canadian petroleum operations, and a shakeout of nonproductive operations has begun, some of which will fall by the wayside, after which I imagine oil prices will stabilize and/or OPEC will adjust production targets to minimize U.S. and Canadian production from some of the more expensive wells, keeping that oil out of the pipeline ... . This situation led to a surprise rate cut by the BOC and another cut is certainly not out of the question. http://business.financialpost.com/20...-says-td-bank/
Nevertheless, EUR/CAD (at least), has continued its bearish decline, so I am going to continue to short the pair at price extremes:
Ordinarily, I short the pair based on the previous day's high/lo (using Fib Retracement Pivot Points), but it may be more productive to wait for 5-10 Day extremes instead, since there has been a bit of whipsawing in the pair in light of oil price changes and, of course, Grexit ... .
Fireworks are fun ... as long as you don't blow your fingers off.