Forex USD/CAD Daily Video, December 08, 2021

[Sive Morten]

Greetings everybody,

Nice B&B "Buy" setup from Loonie this time:

 

[Brett Reynolds]

Excellent Spot Sive! I just saw Beautiful divergence on 1 hour chart. I took a Buy Position @ 1.2640. Tight Stop on this @ 1.26..but with BOC Interest rates i just saw...i closed..and will wait after that..!
Ps. I am still holding my long position on Eur/$ with stops at 1.12.!

 

[soul rebel]

Thanks Sive.
If Eur bullishness is confirmed by upside action this month, do you think cable also has potential to hit maybe 138/14000 region by Jan/Feb 2022 before the anticipated run for the dollar you have talked about in your updates - or is there different dynamics to consider in your opinion?

 

[Sive Morten]

Thanks Sive.
If Eur bullishness is confirmed by upside action this month, do you think cable also has potential to hit maybe 138/14000 region by Jan/Feb 2022 before the anticipated run for the dollar you have talked about in your updates - or is there different dynamics to consider in your opinion?

Hi Viresh, well, UK has absolutely different fundamental background and BoE struggles between necessity to rise and their desire to not do this as it could hurt fragile economy recovery. After the Brexit the correlation has become significantly weaker between EUR and GBP, so it would be better to watch it separately.
In short-term I don't like that GBP was not able to push out from the strong daily support and OP area, which suggests solid bearish pressure. Maybe it makes sense to not hurry up with long entry there...

On EUR, as we've said in weekly report, hardly we confirm the bullish context as we treat current action as just a technical bounce. We aware of further downside continuation on EUR, especially if we get higher CPI on Friday and more hawkish rhetoric from the Fed. EUR has nothing to bet against the USD now.

 

[Merjem.96]

Hey Sive, thank you for the analysis. Could you please explain this B&B strategy or refer me to some link where it is explained.

 

[Sive Morten]

Hey Sive, thank you for the analysis. Could you please explain this B&B strategy or refer me to some link where it is explained.

Hi mate,
well this is DiNapoli invention, you could read in his book - "Trading with DiNapoli levels". But, in general, this is momentum trade - when you see good thrusting action, you could take position on 1st retracement, as momentum will push price back. This is the idea.