The EUR/USD pair is making gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the...
How Can OPEC's Decision Affect the Forex Market?
2023-04-04 • Updated
Well, well, well, looks like the OPEC Conference had an Extraordinary 183rd Meeting on the 31st of March, and made some changes. They gave the International Energy Agency (IEA) the boot and replaced them with Wood Mackenzie and Rystad Energy as their secondary sources for oil supply and demand data. So, what's the big deal? Well, this move could have some serious ripple effects on the financial markets. Investors and traders will be keeping a close eye on how this change impacts oil prices and how it may affect their portfolios. Time will tell if this move will be a wise one or if it'll backfire. Let's see if this adds up - technically speaking.
The Daily timeframe of USDCAD presents us with some of the usual confirmations; Fibonacci retracement levels, MA support, drop-base-rally demand zone, and a few extras. The confluence of the two trendlines aligning as a support is a major indication of bullish intention, but when you combine that with the 200-Day MA as a support, you literally get an 80% valid trade sentiment. I'm personally keeping my eyes peeled on this one.
EURCAD is currently trading inside a channel and approaching a key resistance from the weekly supply zone. It is important to note how the 50-Day MA fits perfectly with the trendline support and the drop-base-rally demand zone which I apparently didn't notice I'd forgotten to mark until now (but I'm hoping you can see it nonetheless). On this one, I'm voting once again in support of the bulls, with my primary target set at the weekly supply zone as marked.
CADJPY is looking bearish from every angle. First, we have the break of the previous marked low, then the Fibonacci retracement level, and supported by the 100-Day MA, which is another major factor to consider. That's not all though. We also have an elusive AMD (Accumulation-Manipulation-Distribution) pattern.
NZDCAD and CADJPY have a few things in common. The sentiment on both pairs, for example, is bearish; then we also have a hidden AMD pattern and a break below the previous low. Considering that price is trading within a channel and has only recently been rejected from the trendline resistance, I believe it is only logical to expect price to swoop down to the trendline support, 200-Day MA, and rally-base-rally demand zone lying just below.
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Canada's forthcoming Consumer Price Index (CPI) data, set for release on Tuesday, is projected to show a year-on-year decline in inflation to 3.2% for October from the previous 3.8%. This potential inflation dip might offer leeway for the Bank of Canada (BoC) to maintain its overnight rate target at 5.0% in the...
Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and...
Gold price (XAU/USD) experienced a notable turnaround, gaining fresh bids after a $125 pullback from its recent peak. Federal Reserve Chair Jerome Powell's recent speech suggested a reluctance towards aggressive rate cuts, dampening speculations of immediate policy easing. Market sentiment leans towards the belief that the Fed has concluded its tightening cycle, with a growing...
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops