The correction-up in the US stock markets has occurred yesterday, as we expected. We had mentioned here that the chances for a 'short-squeeze' were high, and it was possible to look for reversals that aimed to the opened gap from Thursday. The gap was eventually closed in all three indices so this trade-idea worked perfectly and produced about 2%.
Now it is possible to look for potential trades towards yesterday's gap, though the bullish momentum might continue, so be careful.
USD-CAD
The Canadian gained its strength again during the past days. The USD has obviously failed to break through 0.98, and in spite of the strong bearish signal by the cross of the 20 & 50 EMAs, it seems that the USD/CAD is back declining again.
The support of the trend line was broken yesterday by a wide candlestick. If today's bar closes below yesterday's low, it will be a strong signal for a turnover.
EUR-CAD
If the Canadian is actually going back to its main trend, it might occur in other pairs as well. The Euro has been correcting down in the last few days, so the EUR/CAD has one more reason to slide.
Yesterday's price was closed nearly to the support of the 200 SMA in the 4-hours chart. The main support is at 1.3950 and a break-down of that level might make the Euro to shed more than 200 pips before it gets to the next support at 1.37.
Gold
The gold reached to the support we had estimated it would, at 1510$ per ounce. If the gold rises from this point, it will complete the "Cup & Handle" pattern under the resistance at 1550$. In order to do that, it has to break through the 20 EMA in the daily.
If the gold breaks-down the support at 1510$, the next support will be at 1500$. If it goes deeper than that, the price might hit 1510$ per ounce.
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