Good morning team,
Hard luck on the GBPAUD, the trade moved back to breakeven overnight. We may look to revisit the position later today.
The decline on the DXY is still classed as an ABC corrective decline. Therefore we are expecting a final rally on the DXY into the 100 resistance zone.
Crude oil is trading on a major double support line, any breach of the support line will put downside pressure on the CAD.
The USDCAD is also trading on a major support line and appears to have taken a small bounce higher. This support zone has been used as a buy zone previously. The MACD is turning higher and is still trading inside a triangle formation.
The 1 hour charts are showing an inverse head and shoulders structure indicating a higher low and a possible move into the 1.26 resistance zone.
Trade Setup: BUY market execution, current price 1.2505, stop loss 1.2425 and take profit 1.2627.
Stop loss: 80 pips
Take profit: 122 pips