Sentiment: Retail traders are currently 93% short on USDCAD.
Technical Analysis:
The chart shows equal highs (internal buyside liquidity) near the current price level.
This indicates a potential reaction to the downside in the short term.
Price may then either continue downwards impulsively or correctively.
A preference is for a gradual decline (crawl) before a potential move to capture the internal buyside liquidity.
Price Projection:
Despite the short-term downside expectation, a significant upward impulse is anticipated in the coming weeks.
Sentiment Consideration:
The extreme level of retail trader shorts suggests a potential reversal in sentiment.
If traders start closing their short positions and begin buying, it could lead to a shift in market dynamics.
Trading Plan:
Demand factors are influencing the analysis and potential trading decisions. We will buy from demand levels or Internal Liquidity zone FVG
Disclaimer:
This analysis is for informational purposes only and should not be considered as financial advice. Trading in the financial markets involves substantial risk, and it is possible to lose more than invested capital. The author of this analysis and the platform where it is posted are not responsible for any trading decisions made based on this information. Traders should conduct their own research and consider seeking advice from a qualified financial advisor before making any investment decisions.
Please note that this analysis is based on the provided information and doesn't take into account any subsequent developments or changes in market conditions. Always exercise caution and diligence when making trading decisions.
Technical Analysis:
The chart shows equal highs (internal buyside liquidity) near the current price level.
This indicates a potential reaction to the downside in the short term.
Price may then either continue downwards impulsively or correctively.
A preference is for a gradual decline (crawl) before a potential move to capture the internal buyside liquidity.
Price Projection:
Despite the short-term downside expectation, a significant upward impulse is anticipated in the coming weeks.
Sentiment Consideration:
The extreme level of retail trader shorts suggests a potential reversal in sentiment.
If traders start closing their short positions and begin buying, it could lead to a shift in market dynamics.
Trading Plan:
Demand factors are influencing the analysis and potential trading decisions. We will buy from demand levels or Internal Liquidity zone FVG
Disclaimer:
This analysis is for informational purposes only and should not be considered as financial advice. Trading in the financial markets involves substantial risk, and it is possible to lose more than invested capital. The author of this analysis and the platform where it is posted are not responsible for any trading decisions made based on this information. Traders should conduct their own research and consider seeking advice from a qualified financial advisor before making any investment decisions.
Please note that this analysis is based on the provided information and doesn't take into account any subsequent developments or changes in market conditions. Always exercise caution and diligence when making trading decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.