Trade Idea - USDCAD is finding buyers easy to come by after the FOMC minutes, married with a poor tape in US crude. Technically, the pair looks set for a test and potential breakout of the June downtrend, but as things stand, both the technical set-up and fundamental story are lining up for a long entry.
Parameters : Long at current market price 1.3023, SL -...
Trade set up - Enter only on a daily close above key horizontal resistance at 149.31, targeting longer-term price resistance around 155.00. Stops to cover on a daily close below 147.19.
Why we like this trade – Monday’s daily bearish engulfing candle confirms strong resistance and a willingness to fade moves into the 149 – 150 area, so tactically waiting for...
Trade set up – Given the elevated implied volatility in markets (the VIX index sits at 22%) and the potential for further liquidation from systematic funds, it's hard to be long US equity indices. With that in mind, our preference, at least in the short-term, is to sell strength until price can close above the 5-day EMA.
That said, with the technical damage in...
