CADNOK trade ideas
Could inflation differentials drive a CADNOK reversal?The Norwegian Krone has been outperforming over the course of the past week, with yesterdays inflation reading bringing greater pressure on the Norges bank to raise rates further. Scope Market Chief Market Analyst Joshua Mahony looks at CADNOK as an interesting opportunity after a six-month period of strength. The divergence between Canadian and Norwegian inflation provides the basis for NOK strength, while the fact that both are positively correlated with crude oil allows us to strip out much of the risk that movements in energy impact the trade.
With price having broken through trendline support an completed a double-top formation, there is a good chance we could see the pair give back much of the strength seen in H1.
CADNOK long term bullish outlooklooks like we could have something coming up here. bullish outlook at closing looking appealing. will consider keeping close eye on this for potential continuous move to the upside for big profits.
CADNOK will dropYes. No sign of a turnaround. Momentum drops evident. Goals in green, invalidation in red. Not financial advice, do your own research.
ridethepig | CADNOK Market Commentary 2020.03.02Eyes on the technical breakdown in CADNOK to kickstart the week, a few important updates to make here as intervention begins globally from Central Banks and OPEC.
For those tracking Oil you will know we got the massive meltdown that we have been expecting in the chart-pack since last year:
I am tracking a much larger than expected cut from OPEC at 1mbpd and would therefore recommend trading a bounce in risk markets. The view of a cut from BoC this week seems a done-deal too - this will start the round of global easing.
On the technical side, targeting a fresh breakdown into the stops at 6.8xx. Invalidation is found above the recent highs. Thanks as usual for keeping the support coming with likes, comments and etc!
ridethepig | Apple in the worm for CADNOKA very good time to update the short-term flow setup for CADNOK after such a brilliant squeeze. For those tracking the 2020 Macro flows:
This week we have a simple technical move in play. A textbook case of "Apple in the worm" as it seems to me a poor choice of the moment for buyers to continue the advance. Extending the characteristics position (= swing configuration) by letting buyers go overboard and bet on momentum while the macro defence can be a reliable guardian.
A better move is to sell the 6.99xx highs here with targets located initially at the support levels 6.865xx.. and then perhaps 6.47xx. The business of a bullish NOK did not become an attacking instrument; stops can be kept comfortably above the 7.00xx handle.
Good luck all those trading CADNOK in the coming sessions, as usual thanks for keeping your support coming with likes, comments and etc!
CADNOK: Final phase of the bull leg.CADNOK is on a strong 1D Channel Up (RSI = 69.678, MACD = 0.025, ADX = 55.588, Highs/Lows = 0.0757) that started on December 30th when the price touched the 6.72000 Support. It is well above the MA50 and appears to be repeating the previous bullish leg that rebounded on the 1D Support. The pressure zones are symmetrical as seen on the chart.
This Channel Up though is on its final phase as the 7.1250 1D Resistance is close. Pursue this late buy opportunity with proper risk management.
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ridethepig | CADNOK 2020 Macro Map A good time to map the strategy and flows for CADNOK as we approach year-end. As you will have noticed I am tracking for a major pullback in the cross over the first half in 2020, this is coming from large macro forces at play. Central bank coordination has opened up the opportunity for NOK to outperform CAD.
Firstly the reflation theme via USD devaluation is going to help Canada a lot less than the rest as Canada will receive a spillover from the US manufacturing recession.
Secondly we need to discuss the impact of Oil across both economies. CAD and NOK are affected by oil with divergencies in their breakevens. For example Canada breakevens are circa $45 compared with Norway at $23 per barrel. Meaning simply Norway has more breathing room for the fall in Oil:
The third and final leg to the stool is coming from yield differentials. After the more dovish than expected shift in stance from BoC, the window is open for a cut which has not been fully priced while Norges which was previously the last hawk standing has hit the pause button. I personally see room for another hike from Norges next year which is the leg I am looking to trade here.
Best of luck all those in CADNOK, a very good pair to add to your FX portfolio.
CAD/NOK On an uptrend Head and Shoulder is forming and it is indicating that this pair is now ready for deep down till 200 moving average.
CADNOK is testing trend watch price action for buy Hi there,
CADNOK is in strong trend and setting up for another bullish wave.
Watch price action for another bullish wave
Good Luck
CADNOK: Interesting alternate ABCD on weeklyI've spotted late this alternate ABCD pattern. Alternates are any pattern where AB=CD. There are the standard ABCD patterns that are well known.
I'm exploring and learning from alternates to see what degree of corrections to expect. This set up is therefore observational only.
CADNOK: Interesting situationsCADNOK has make some interesting trend switches, that may afford trading opportunities.
I explore the probabilities.
This is not a recommendation to trade. Your losses are your own.
CADNOKCADNOK
Head and Shoulders = completed
Retest of the Head and Shoulders = completed
Now i'm waiting for the RETEST of the previous resistance to be completed
Action = BUY
CADNOK Sell SignalPattern: Channel Up on 1W.
Signal: Bearish as the price is approaching the Higher High.
Target: 6.4500 (near the Higher Low zone).
Range Bound OpportunityHere's one of the recent pairs on my watch list for this week. We can see that price has formed a confirmed range and is moving down towards resistance. For me a confirmed range means a minimum of 2 price rejections at a price level. It may or may not reach support this week. It all depends on the price momentum.
In general, when trading ranges it is important to realize the pros and cons. There is no guarantee that price will reach support. It may turn around and form a small range and breakout or may plunge right through support and breakout into a down trend. These are just a few of the possibilities. There's nothing guaranteed in trading. What we want is bullish evidence around the support area. I like to use candlestick patterns, but if you are new to range trading you an use any indicator or combination of indicators or patterns you wish and then you can decide on your entry method. I have used zones as well at times if you look at some of my past trade ideas. You can get in using a limit order, buy stop, or even market order. Stop loss is also personal and depends on your personal risk tolerance, so I won't comment much on that. Just know that a tighter stop will stop you out more, but get you a better RR. A more liberal stop loss will get you less stop outs but hurt your RR if the trade does go in your favor, so you choose.
Remember risk management largely determines the success of any strategy. Not the strategy itself. I will update if I see something that I consider bullish enough around support for entry. Any and all advice is simply my opinion and forex trading is risky. Follow at your own risk. Be safe and never risk more than you can afford to lose. Happy trading!
CADNOK: Major trend switchI show a rare trend switch on CADNOK for the south on the daily time frame. This usually means business. CADNOK is a very violent pair to trade but potentially one that can deliver. Wide stops and big account sizes are needed.
