Today's MARKET STATE CANADIAN DOLLAR **BEAR TREND CORRECTION**
- Technically the MKT is on edge and flirting with a release. The MKT has produced a big negative signal and any positive corrective action is expected to be short-lived. Any held strength is a sign that the trade will turn digestive.
- On the SELL side accept FADE, REVERSAL and BREAKOUT strategies below the previous session's high point. DIR and DP BREAKOUT may need to be "worked" as the MKT is on edge and will be emotional, producing some starts and stops before it drops.
- On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies. BREAKOUT strategies above the previous session high are a long shot, so risk less and go for more. Any DIR or DP FADE should have confirmation and is not recommended if the integrity of the previous session high is intact.
Today's PRICE MAP Performance for CD
Wrap Up
In a BEAR TREND ACCELERATION market state, traders should look to get short the market aggressively from below the R Level at the UT1. After finding support at the DT1 following the early morning breakout from the DP, the market played host to a sharp corrective rally that tested the upside pivot. This presented a PERFECT opportunity for traders to get short the market with a SELL UP FADE strategy. After the market failed from our UP resistance pivot, a selling opportunity was again presented at the DIR in the form of the SELL CR BREAKOUT strategy. After the early morning breach of the DP, the market retested the DIR and allowed traders to enter short, or add to their short position. Finally, the market, once again, broke out below the DP offering traders a THIRD short entry point with the SELL DP BREAKOUT strategy. Having three different entry signals presented, the market proceeded to sell of sharply and reward the short positions. After digesting a bit at the DT1, the market fell sharply through our initial target at the DT2 and made it all the way to our third support target at the DT3, allowing traders to take profits on the shorts.
