Extreme trader sentiment points to possible USDCAD downtrend

Extreme trader sentiment points to possible USDCAD downtrend for FX:USDCAD by FXCM

Extreme trader sentiment points to possible USDCAD downtrend

The Trend Follower Strategy has just sold USDCAD at 1.27059. The system recommends entering this trade at any price between 1.269 and 1.27218. The signal was issued because our Speculative Sentiment Index is extremely negative, with a value of 3.05864. This suggests that the USDCAD could be trending downwards.The 14-period Average True Range on a daily chart is 0.00635, so the stop loss has been set at 1.27694. This stop loss order is a trailing stop that will move down as the market moves down. There is no profit target for this strategy. We expect to be closed by the stop loss.Trend Follower is a trend trading strategy that aims to buy and hold rising currency pairs and to sell short and hold falling currency pairs. The strategy looks to buy when the Speculative Sentiment Index is below -1.5, and looks to short when it is above +1.5.

Signal ID: 74545
Time Issued: Monday, 04 January 2021 06:00:16 GMT
Status: open
Entry: 1.269 – 1.27218
Limit: N/A
Stop Loss: 1.27694

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