Forex trading short on GBP/CAD, USD/CAD in descending triangle [Video]
|Last Friday the news from Ottawa, Canada regarding employment was much better than predicted.
So, how can we take advantage of this?
The April Employment Change was more than 4 times higher than predicted and the Unemployment Rate was lower than predicted indicating a stronger Loonie.
If we look at all the CAD pairs we see mixed strength and weakness but we want to look for opportunities WITH the trend.
So, on GBPCAD, for example, we are already in a downtrend and we can see the volatility caused by Friday’s news.
We can see where GBP buyers entered the market and where sellers have the opportunity now.
Price action has come back to the upper trend line and the stochastic oscillator is very overbought.
On USDCAD we are monitoring a descending triangle with the stochastic oscillator heading into overbought as well.
On EURCAD we have a bit of a conundrum as this bull run indicates a weaker CAD or, are we seeing a reversal pattern forming?
Let’s keep an eye on this.
We can see that EUR is very strong right now except against the AUD and NZD.
Further investigation shows us that AUD is the strongest currency right now.
Gold broke out of this symmetrical pennant based on tensions in the Israel/Gaza war but had pulled back.
Silver followed and price action has fallen to this key level of support at the lower trend line of this bull run.
The stochastic oscillator is oversold but wait for confirmation before opening a long position.
Also, on any USD symbols, watch out for lots of inflation news this week.
That’s all for now.
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