This chart was the latest one I showed in PTC with Chris Lori’s group. It was telling me something may be in the bushes here. I am putting this here for the record. PTC members will recognize the pattern I was pointing out here for the Globex SP.
I am asking myself what the US Dollar might do next. I interpret COT still as bearish for the US$. The chart above shows a sort of mirror lately for US Dollar vs. Canadian Dollar. the Canadian Dollar is heading into resistance while the US Dollar is also at a range top.
If you are using MT4 these Fib Levels will help you trade when you trade the way we do. I put this together many years ago, and I had it stored on Twitpic <. Sometimes the best way not to loose something.
This Friday Morning here in California. And I am waking to further breakdown for this pair. I did a brief trade at the bounce at the level expected. I am documenting this because I had put my reputation on the line with COT analysis for this pair.
Nice to look at the weekly chart as well below the 8 hr. What a story!
We can see here in this chart how the COT ranges have increased since around 2006/7 <> Steven Briese has been talking about this difficulty for COT analysis. He has revamped his ways since then. He was saying that around the beginning of this change the CFTC had broken its own rules and allowed for some large traders to go beyond limit rules.
But I think we will now slowly have enough data to see the new limits.
I think it is good practice to remind ourselves of what we were talking about recently and then acknowledge the result here in particular for the NZDUSD pair. We certainly had great help from COT and then “head and shoulder” pattern development.
I added a weekly chart here for an overview. Chris was saying that we might get into the lower 80s here.