Hello friends,
Yesterday was an interesting day as most of my trade forecasts discussed in the Daily forecast video were successful, including SILVER, GOLD and GBPUSD.
We need to be very careful as there were some choppy moves in the market yesterday after the release of pending home sales data from the US. Today we will be looking for buy opportunities in USDCAD. Canadian dollar has been declining from the past few days, and I expect some more weakness for Canadian dollar. After trading as high as 1.0565, USDCAD has retraced some of its gains. USDCAD is trading inside a triangle as plotted on the 1 hour chart shown below, and forming a bullish wedge. In order to buy USDCAD we need a break of this triangle along with the previous resistance of 1.0500. After a break to the upside, we would be looking for bullish candle pattern on the 1 hour chart to jump into the trade.
Initial target would be the last high of 1.0565, and final target should be the next weekly resistance of 1.0750 as shown in the chart below. Stop should be placed below the previous low. If we do not get a break to the upside, then we will stay away from this pair for some time until we get another opportunity as we have some key fundamental events lined up for today.
As mentioned in the yesterday’s post, German Inflation data is scheduled later in the day, which can have a significant impact on all Euro crosses. Some other major events lined up in the US session, including US GDP data and Initial Jobless claims. Market is expecting increased Gross Domestic Product from the US with the expectation of 2.2% against the previous of 1.7%. Initial jobless claims are also expected to drop from 336K to 332K. If data does not miss the expectations, then USD might gain later in the day.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURGBP, GBPUSD, AUDNZD, NZDUSD, SILVER and GOLD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
