Big news has come out this week already on both currencies, and there is more to come tomorrow on them. This morning, the BOC (Bank of Canada) announced that they would leave interest rates unchanged at 0.25%, the same as last report. Yesterday, President Trump spoke about how him and his staff are working to reopen schools on time, grow job numbers and help fix the economy during a pandemic. Starting this morning, UC came down hard and reached the 200 Day Moving Average. This article will be more brief than others as we try to get our ideas out there in real time so the information is still relevant, especially on lower time frames.
Here, we're looking at UC on the daily chart. Key resistance is shown around 1.38757, while key support lies on the 200 DMA and at 1.33414. Prices also broke out of the wedge drawn which could signify more swings to the downside, but support from the moving average could help prices sustain upwards momentum. Right now, we're looking at long positions on the moving average as well as support in the 1.33410s. Relative Strength indicates that the price is under 50, so we could be entering an oversold level soon.
USD/CAD on the 4H chart. 14-hour RSI definitely showing signs of being oversold, but resistance lies at 1.35366. A break in this level would be bullish for the pair, and we're thinking that prices might test that level and pullback before an actual break. So, there could be some short interest there on the 4H.
15 min Chart
UC on the 15 min chart. More resistance lies ahead at 1.35590, but it looks like the sellers' rush is beginning to fade. We're expecting to see some swing to the upside before the pair catches short pressure on the 15 min and 4H chart levels. If prices can make it up through resistance, we may look to buy again on pullbacks. Bollinger bands shrunk, showing signs lesser volatility to the downtrend, and short candles making a hammer formation looks like buyers are trying to step in.
Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.
Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.
Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.
Today, Fed chairman Jerome Powell spoke on the labor market and inflation. While we don't know what the future holds for the equities and currency market, we can derive certain conclusions from investors' interpretations. Here are some powerful takeaways from Powell's remarks this afternoon. Key takeaways Market Impact This caused the dollar and equities to […]
Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]
With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]
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