USDCAD: Oil Outlook Looking Good Again

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USDCAD
Timeframe: 1D
Direction: Short

Confluences for Trade:
- Bearish candle formations
- Price action can't seem to break and stay above the Horizontal Resistance Trendline
- Price action reversed off middle of Parallel Channel
- Stochastic near Overbought momentum
- Fundamentally, the temporary truce between Trump-Xi trade war should be a positive to global demand sentiment; which is positive to oil (highly correlated to the CAD economy). This should provide a boost to the CAD alongside a more dovish FED. Expecting price to have a gap down when market opens but the trade should still be strongly towards risk on trades for a longer-term hold. Also, the extension of OPEC+ to manage oil is going to be good news.

Suggested Trade:
Entry @ Area of Interest 1.3240 - 1.3330
SL: 1.3393
TP: 1.3033
RR: Approx. 2.33 (Depending on Entry Level)


May the pips move in our favor! Good luck! :D

*This trade suggestion is provided on an advisory basis. Any trade decisions made based on this suggestion is a personal decision and we are not responsible for any losses derived from it.

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Bank of Canada have a more dovish tone and affected price action.