Momentum trading WTI Crude Oil and USD/CAD, forex trading indices on Fed interest rate hints [Video]
|The US administration seems to be softening on tariffs and pushing for peace in Ukraine.
Does this mean a downturn in gold?
Price action on gold hit $3,500 this week but we are seeing a retreat.
We are seeing bearing activity on the stochastic oscillator and MACD is trying to fall below zero so we will keep an eye on this.
If we see better news on tariffs, we will see our momentum trade on WTI and Brent Crude continuing.
You will note long entry points whenever we see a dip in price action and an
oversold stochastic oscillator.
It is overbought now so, keep an eye on the next dip in price action.
A couple of US Federal Reserve heads are hinting at interest rate cuts in June.
This will boost the US indices like the NASDAQ and we still see room to move on the stochastic oscillator and bullish signs on MACD, on the daily chart.
On the 4-hour chart, however, we see price action at this key level and the stochastic oscillator looking overbought.
European indices are looking even more bullish like the DAX40 but are we seeing a rising wedge?
Let’s keep an eye on these.
Due to the uncertainty over the US economy, USD is weaker against every other major currency except the yen.
So, the softening tariff stance, and the Fed’s rumours about interest rates, are contradictory forces so we will have to see what breaks first.
Meanwhile, let’s look for opportunities like this momentum trade on USDCAD.
That’s all for now.
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