USDCAD – BUY – 7th October 2020

USDCAD – BUY – 7th October 2020 (Closed)

Good morning team,

This morning Trump has gone from hero to zero. His release from hospital sent global stocks higher with the DAX gaining through the night. However, we always thought there was a potential risk with the stimulus negotiations. Trump has tweeted this morning that there will be no stimulus package before the Presidential election campaigns. Previously markets had been moving in a risk on mode anticipating an agreement between the Democrats and Republicans. Unfortunately, a couple of hours ago Trump has sent global equities lower.

We are now looking to position on the USDCAD.

USDCAD – 4 Hour Charts

USDCAD was on our watchlist last night for a potential inverted head and shoulders formation. We are now looking to position on the pair expecting a move above the neck line.

Trade Setup: BUY Market execution, current price 1.3306, stop loss 1.3206 and take profit 1.3526.

Stop loss: 100 pips

Take profit: 220 pips

Trade Setup
BUY - Market Execution

Entry
1.3306

Take Profit
1.3526

Stop Loss
1.3206