Brad Alexander
FX Large Limited
Last time we looked at all the gaps in US indices and USD pairs.
Then something incredible happened!
After we posted the last video, Donald Trump announced that he would impose 20% tariffs on goods from Canada and Mexico.
If we look at USDMXN we see the effect that that had on the Mexican Peso.
Price action filled the aforementioned weekend gap, flew higher, and then fell back to 20.4 pesos.
We may have a long opportunity as price action has fallen to this lower trend line and the stochastic oscillator is now oversold.
We see similar craziness with USDCAD with the gap being filled, CAD going much weaker very quickly, and price action falling back down.
Not every gap was filled but the main ones that did were AUDUSD, GBPUSD, and NZDUSD.
The EURUSD and USDJPY gaps were filled but just by the highs and lows of the candle wicks.
The same thing happened to the S&P500 and the NASDAQ but not the other 2.
One of the other reasons for CAD weakness is the falling price of crude oil.
We see price action on WTI in a descending triangle with support in the $66 zone.
Today is a holiday in the US so the markets will be calm but we have statement from the BoE and GDP from Canada so watch for volatility and opportunities.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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