Ticker tape by TradingView

Time To Sell CAD? What OPEC Meeting Tells Us

7/20/2021

Members of OPEC agreed to increase oil production by September of this year. Production cuts are around 5.8 million barrels a day, and OPEC is going to stop these cuts by increasing barrel production by 400,000 per day. Members are now starting to want to increase production as global economies begin reopening despite the growing rate of the delta strain. USOil is up 0.30% on the day today at the time of writing this.

How this affects Canada

A big factor in Canada's GDP is oil production, and an increasing demand in oil helps both the price of oil and the Canadian economy. An increase of supply will lessen demand which could hurt Canada while a cut in barrel production is good for the loonie.

Our outlook

It seems like an increase of 400,000 barrels each day starting August of this year is a sign of economic recovery, but that doesn't seems like a lot compared to the 5.8 million cut each day. So, there's an argument that supply might not be enough to outpace the demand for oil on a global scale. I think there's an argument for both sides here, and it depends on which currency pair you look at. I am bullish CADJPY, USDCAD & CADCHF, bearish GPBCAD.

Trade Setups

GBPCAD

GCAD came down today 0.6% and is nearing support around 1.72590 if price can't find support slightly above at its 200 DMA. Higher lows on the 1D chart have started a rising trend line formation.

CADJPY

CJ coming up off lows today and formed a double bottom on the 1D chart. Price didn't quite reach its 200 DMA, but does show some rejection from the support zone. Resistance is around 87.107.

CADCHF

CADCHF bounces off its 200 DMA on the 1D chart and is hitting resistance. The pair is up 0.80% for the day as it held the moving average really well.

USDCAD

USDCAD comes off highs on the daily chart and shows some rejection from the top. New support is around 1.26530 and its 200 DMA should price come back down to this level.

Want to see our trades?

Join our VIP!

Our entries, exits, & analysis
Live webinar coaching calls
Trading chatrooms
Strategy library
Use Code "READER" for $5 OFF!
Join Now
Forex Market Recap (18-23 July 2021)

With markets beginning to a volatile start on Covid fears, by the end of the week markets seemed to calm down to a steady recovery. The CAD performed the best rising in recovery in risk, but also on rising oil prices. The Euro had the most notable event of the week due to the monetary […]

Read More
Up 1500 Pips! How We Caught A Big Mover

7/23/2021 This week, me and Nick caught a crazy move on the SPX500 that we are currently still in at the time of writing this. This one move has netted us around 1,500 pips in equity. We haven't closed, so this number will not be the same when the trade is over, but this article […]

Read More
The Truth about Growing a Small Account

Is it possible to flip an account in a short period of time? Yes, It is theoretically possible. Is it likely? Not really.Unfortunately, flipping a small amount of money in a short period is risky and usually won't go your way. While still possible, this method of trading is more like gambling than trading. Let's pretend you […]

Read More
Bitcoin Jumps On Musk Announcement- How To Trade This News

7/22/2021 The past couple months haven't been too good for the crypto market, in fact, the market saw a $90 billion loss since May. If you have kept up with the activity on Elon Musk's account, you might have seen how the majority of his tweets about dogecoin or bitcoin have greatly influenced the price […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram