CAD to be bid over the coming sessions
Well, it has finally happened. The NAFTA deal is done, or rather the USMCA as it is now called. The acronymn means Unites States, Mexico and Canada agreement.. it is not a surprise really that the deal is finalised, but it is a relief. Adam, Eamonn and Justin have been all over this as it has come out over the weekend and finalised last night.
So, this is now over to you and your trading. Here is a few pointers to help you. In terms of pairs to buy CAD against you could sell USDCAD or buy CADJPY (just keep an eye on US china trade war rhetoric). As an aside, we can see a clear pattern of behaviour now from President Trump. The NAFTA deal got done, despite the tweets and the ups and downs. Bottom line is he gets to the table. The original rumour seems true – Trump appears to bluster to get people focused to negotiate. I now expect a similar pattern with President Trump over his interaction with China, just a little more bloody. I am also sure that China will roll over in the negotiations. They will find a way to do it, so they don’t lose face of course. but they will still play ball with the US. The US is the bigger dog in the ring. So, the markets general modus operandi of fading President Trump’s tweets seems justified. Bring yourself over to that view now as the market consensus. Fade the US president.
Anyway, I digress, back to the main point. Here are some technical places to look to buy CAD. At Pivot points, at horizontal support or resistance, at moving averages and at Fibonacci retrracement points. Some good places are the 50 MA on the 15 minute chart on CADJPY and CADCHF (just watch euro Italy fears and US China trade wars). USDCAD looks great from the 100MA weekly (my current preference) along with GBPCAD short from any MA on 15minute chart and above.
Happy CAD hunting 🙂