Bullish bias on Brent (UK Oil), USD/CAD in descending triangle, trading short CAD/JPY [Video]
|Yesterday we determined that CAD and USD were both weak currencies and it can be difficult to trade a pair with the same bias.
However, we may have an opportunity tomorrow with lots of economic news coming out of Ottawa, including an Interest Rate decision and press conference.
For example, the news may break this line of resistance or it may drive price action back up to this upper trend line.
If we add other indicators like the Parabolic SAR and MACD, we see a bearish bias but wait for confirmation before you enter a position.
Right now, we have an opportunity on CADJPY.
Price action has just bounced off this upper trend line and the stochastic oscillator has turned down from overbought.
Another option is AUDCAD.
If the news drives price action lower temporarily, into the lower trend line, we may have a buy trade opportunity.
An overview of AUD pairs proves to us that it is definitely a strong currency right now.
We see a pullback from the downtrend on Brent Crude but prudent traders may want to wait for a selling opportunity.
We will wait to see if price action reaches the upper trend line and our indicators like MACD turn bearish.
And finally, we see an ascending triangle on the Russell 2000 Index so we will watch for a break of resistance or a pullback to this lower trend line.
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