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.
Recommended Content
Editors’ Picks
AUD/USD stalls rebound above 0.6200 after China's Caixin Manufacturing PMI
AUD/USD pauses its recovery above 0.6200 in the Asian session on Thursday. Disappointing China's Caixin PMI data for December combined with a fresh US Dollar buying checks the Aussie's upswing amid a negative shift in risk sentiment on the first trading day of 2025.
Gold extends gains toward $2,650 as 2025 kicks in
Gold price extends previous gains toward $2,650 in the Asian session on the first trading day of 2025 on Thursday. The uncertainties around US President-elect Donald Trump's tariff policies, geopolitical risks and central bank buying continue to underpin the bright metal.
Ethereum could see new all-time high in 2025 as blobs top burn leaderboard
Ethereum is down 1% on Tuesday following a weeklong consolidation of the general crypto market. The top altcoin could be set for a bullish 2025 if blobs continue their recent trend of burning high amounts of ETH.
USD/JPY holds gains around 157.50 amid firmer US Dollar, thin trading
USD/JPY is off the highs but holds moderate gains near 157.50 in Thursday's Asian trading. The pair finds traction amid a renewed US Dollar uptick as risk sentiment deteriorates on bleak Chinese PMI data. Thin liquidity conditions could exaggerate USD/JPY moves as Japan is on holiday.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.