Monday 2nd December
Good afternoon Forex Kings,
We have a busy week a head with a number of major economic announcements coming from Australia, Canada and US.
China has continued to insist that the US roll back tariffs as part of the phase one of the trade deal. The US could scrap tariffs scheduled to take place on the 15th of December, however they are resisting Chinas demand to remove all tariffs which have already been placed. If the US remove all trariffs placed, it could appear to be surrendering their only weapon in the trade war. This is going to be an interesting lead up to December 15th.
Australia: The AUDUSD remains under pressure for a number of reasons. The RBA are expected to keep interest rates on hold tomorrow. However, they could signal further rate cuts this year. Westpac are treading water as we wait to hear the punishment for 23 million counts of anti money laundering issues.
Canada: The BoC is expected to keep interest rates on hold, however if they take a dovish stance, like many other central banks we could see a weaker CAD towards the mid-late week, on the other hand, if they keep a neutral stance the CAD could see a strong finish.
Oil prices took a huge loss on Friday as the US reported record high Oil production, this week we see OPEC meet with its allies, including Russia. Any further news of extending oil supply cuts until mid-2020 could give oil prices a boost.
USDCAD Daily Time Frame
The pair has been trading between the 61.8% and 50% FIB retracement levels and is now approaching the negative trend line which has provided resistance previously.
USDCAD – 1 Hour Time Frame
1.3320 is providing a resistance level and 1.3260 is providing support. We are looking to enter two positions on this pair.
Trade Set Up 1: USDCAD – SELL at market order (current price is 1.3285), stop loss above the major resistance at 1.3370, take profit at 1.3150.
Trade Set Up 2: USDCAD SELL LIMIT – Entry price 1.3315, stop loss at 1.3370, take profit set at 1.3150.
More to come this week!