A friend asked for a view of UC and I thought I would share.
UC is now trading in a strong resistance zone and has only peaked at this level thrice this year. If you believe in history repeating itself then look for short opportunities here. The pair is alos trading well above its moving averages and for neighbouring trading partner countries one would expect the currency to revert to MA.
This is a fairly big news week for both USD and CAD and with UC at these levels I would be looking for shorting opportunities following the news. Besides the forex news, also keep an eye on US tax reforms, this is a key test to the Trump administration and failure to deliver on this would provide a fairly large set back. My personal view is that this is already factored into the currency price looking at DXY levels but never underestimate media hype around this.
Be cautious with open positions going further into this week and make sure trailing stops and SL's are in place. As there is more potential to fall, I would be looking to short on bad USD news and good CAD news and keep out of longs unless you see a definite trend brake which is unlikely in my view based on current oil movements.
UC is now trading in a strong resistance zone and has only peaked at this level thrice this year. If you believe in history repeating itself then look for short opportunities here. The pair is alos trading well above its moving averages and for neighbouring trading partner countries one would expect the currency to revert to MA.
This is a fairly big news week for both USD and CAD and with UC at these levels I would be looking for shorting opportunities following the news. Besides the forex news, also keep an eye on US tax reforms, this is a key test to the Trump administration and failure to deliver on this would provide a fairly large set back. My personal view is that this is already factored into the currency price looking at DXY levels but never underestimate media hype around this.
Be cautious with open positions going further into this week and make sure trailing stops and SL's are in place. As there is more potential to fall, I would be looking to short on bad USD news and good CAD news and keep out of longs unless you see a definite trend brake which is unlikely in my view based on current oil movements.