Mexico gains a steady recovery after an overnight bullish rally. The price seems to be consolidating between the range of 18.70-50. I expect the price will trend lower but high volatility could see the price reverse at the bullish channel support and test the recent high's above 18.73
NAFTA optimism meets resurgance of USD strenght. The price movement seems to have consolidated on a horizontal zone between 18.62 and 18.54, that is still a very widespread but I believe this familiar price range is a welcomed pause for exotic currency traders after much volatility in the MXN market. Is this the calm before the storm? Trump address later today and...
OANDA:USDCAD Observations 1)During 2017, USDCAD experienced 4-Massive Bearish Candles: January, May, June, July, and December. 2)When you zoom those months' performance, you find that all shorts from 'High to Low' could have banked a max accumulation of (600) pips. 3)January 2018, trades from 1.2590 to 1.2282 which translates only to (290) pips meaning; if...
Fundamental Tailwinds: NAFTA uncertainty Correlation to (overvalued) stock market
Fundamentals: - NAFTA Negotiations uncertain, any signal at termination would cause loonie to sell-off - JPY tight inverse correlation to global stock market, therefore a sell-off in markets would benefit this positioning Technicals: - Clean break of uptrend - 100 Day MA crossover - Ichimoku transition line crossing baseline
Look for shorting opportunities if prior support turns into resistance. On a fundamental side, NAFTA will start to be negotiated in less than two months. News regarding NAFTA can make this pair very volatile. Remember to use at least a 1:2 Risk/Reward ratio with proper risk management. I love Comments and Likes!!! Collaboration? --->>>> traderkevin101@gmail.com
$USDCAD likes to do inverted Vs. Ramp, consolidate, fade. So the mirror fractal isn't a bad fit. Also it's in a bullish descending wedge. Trump-Trudeau and the Wilbur Ross confirmation today can only be bad for NAFTA, but as often happens, (GBP & EUR into Brexit), counterintuitive trading occurs before the event. So we have three technicals, and one fundamental...