In today’s live trading session, we went over the current status of the trades we discussed yesterday. We then went over the US Dollar Index (DXY) to determine where the majors are headed.
During yesterday’s live session, we found several setups for pairs containing the Canadian Dollar. We had a bullish bias on the Loonie as it had released impressive unemployment data last Friday. This morning we saw that AUDCAD was inching closer and closer to our entry point. NZDCAD has already started to go into our profit zone, so we will be looking at AUDCAD as a trade to enter. Today, we were also able to find a swing short for EURCAD. Once today’s low is cleared, we will be looking to enter.
We then took a look at the DXY to determine a sense of direction for the majors. Currently, both EURUSD and GBPUSD are retracing back to last week’s highs. We are more concerned about what will happen once we reach these highs, will price break to the upside, or use it as resistance and selloff? The DXY indicates a potential visit to 94.00, before another leg down. Tomorrow we have the US CPI data being released, and the current forecasts indicate a bearish result. If the forecasts hold true, we could see long setups for many of the majors.
With the CPI data release occurring tomorrow morning, we will see a huge surge of midweek volatility in the markets. We expect most of our trade entries to occur in the next 48 hours. Not to forget, later tonight we have the RBNZ rate statement which should be market-mover despite rates are expected to remain the same. As always, be safe and trade responsibly!
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