FX Wars Episode 2 - Attack of the CAD clones!Round 2, Fight!
Result Round 1 see here:
After my first EURCAD short hit the target and the EURCAD made a nice retracement to the upper edge of the range, I basically enter the same trade again:
I split the trade into 2 positions:
I short the EURCAD once here directly and at the same time place a limit order at the current range high of 1.51000.
I place the take profit at 1.41000.
A tasty 1000 pips profit awaits me :)
I have already explained the reasons for this in detail in the 1st episode.
A summary:
Once upon a time, a long, long time ago, there was a confused rebellion by the European Central Bank (ECB).
It erred in almost all important matters and plunged the European economy into a severe crisis.
The beneficiaries are the renegade followers of the CAD empire, including myself. They are (once again) profiting from the sheer ignorance and short-sightedness of the ignorant ECB Council by shorting the EURCAD.
- As predicted back in July, inflation in the eurozone fell far faster than the ECB and the market had expected.
- At the same time, eurozone GDP was also far worse than expected (as I had predicted, see commentary of 6 September.
- The ECB is (once again) wrong on all counts and is reluctant to utter the forbidden words "interest rate cuts". The most important ECB members do not see the possibility of considering interest rate cuts until the end of 2024 at the earliest
-> This is a fallacy and the market will already be discussing interest rate cuts with the ECB at length in Q1
-> I see a high probability that we will be very close to the ECB's first rate cut as early as April 2024.
More will of course follow in 2024.
To be continued...
