Traders seem to have focused on next week’s FOMC and the US$ has opened the week a bit higher on the back of these US rate-hike thoughts. Oil pricing has been savaged following on from last Friday’s OPEC meeting where it was announced that current supply levels would be maintained. This rout has dragged energy stocks lower and pulled the three major US indices, the S&P500, DJIA & NASDAQ, down as well. Another impact has been to launch the USD/CAD up through a significant resistance level and, possibly, along the way of a major 3,000 pip Cup ‘n’ Handle move I’ve been stalking and writing about in w/e updates.
USDX weekly: trying to recover but the 100 level remains as resistance:
Oil 30 min: this enabled a decent short-term trade during the US session:
S&P500 30 min: weaker too but some buying was seen into the close:
Gold weekly: it seems the Oil rout has impacted all commodities, and the stronger US$ too:
Silver 4hr: this signal closed off for 30 pips:
USD/CAD 4hr: it’s no surprise that the USD/CAD rallied given this Oil weakness and this pair gave a new TC signal LONG off my 9pm candle last night. It has also broken above the major S/R level of the monthly chart’s 61.8% fib and this may now signal the kick-start of the monthly chart’s 3,000 pip Cup ‘n’ Handle pattern I’ve been stalking for months now. Watch for any impact from tonight’s CAD data:
USD/CAD 4hr: a LONG from the whole number 1.35, that is near this monthly fib, may be a low risk / high reward option?
USD/CAD monthly: this move is supporting the bullish Cup ‘n’ Handle move I have been stalking on this pair for many months now:
USD/CAD 30 min: European & US traders got a great short-term trade opportunity here:
Other FX: Data today includes: AUD NAB Business Confidence, CNY Trade Balance, GBP Manufacturing Production, CAD Building Permits & a BoC Gov Poloz speech.
Also, I noted last w/e how the FX Indices are now back to being divergent on the 4hr and daily time frames. On my blog site I describe how these periods are often accompanied with better trading opportunities during the US session and from shorter time frame charts. This has been the case again overnight with a number of charts, Oil included, giving great low risk / high reward trade opportunities during the late Europe and US session and from 30 min charts.
E/J 4hr: hovering below a triangle TL. Watch for any pull back to the high-lighted region for possible support:
E/J daily: the daily triangle in perspective:
A/U 4hr: This pair hurt a bit by the stronger US$ and weaker commodities. It’s still below 0.74 resistance but above a 5-week support TL:
A/J 4hr: I’m still looking for a test of 89 and, then, a possible follow-though move to 95:
Cable: a bit lower but within a bullish 4hr wedge set within a daily triangle:
Kiwi daily: weaker on expectation of a rate cut from the RBNZ on Thursday:
U/J 4hr: I didn’t receive a new TC signal here and this remains choppy under the 124 level:
GBP/JPY 4hr: also consolidating within a triangle:
GBP/AUD: this is back near the key 2.07 S/R level and also gave a good short-term trade during the European/ US session worth well over 100 pips:
G/A 30 min:
GBP/NZD: this has rallied back up off the 2.24 S/R level and also gave a good trade starting in the Asian session:
G/N 30 min: thoughts of an NZD rate cut supported this trade from the market open to give over 200 pips:
EUR/AUD: this is trying to break back above a 14-week bear trend line on the 4hr chart. It’s also within a developing triangle on the daily chart:
E/A 30: this also gave a 100 pip short-term trade during the US session though too:
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