Trading short EUR/CAD and EUR/AUD, Brent (UK Oil) in double top, Nasdaq opens with a gap [Video]
|I’m Brad Alexander and in today’s Market Blast, let’s look at the NASDAQ (US100), USDCAD, EURCAD, CADJPY, and Brent Crude (UKOil).
The market has been looking at $100 per barrel oil for a while now but many factors have stalled it including high production levels of WTI in the US.
On the technical side, we see a double top and bearish indications from the stochastic oscillator and the signal line exiting the histogram on MACD on the daily chart.
This pause on the price of oil, and a bad Canadian GDP report, has had a very negative effect on CAD.
USDCAD was the worst affected and we see the stochastic oscillator very overbought.
However, this might be a risky time to sell USDCAD as the pair is in an uptrend.
A safer trade would be to sell EURCAD which is in a clear downtrend and the stochastic oscillator is also overbought.
Another opportunity exists with CADJPY in the opposite direction as price action has bounced off the lower trend line in an uptrend and the stochastic oscillator is oversold and turning up.
However, keep an eye on this week’s Canadian economic news with a PMI on Thursday and monthly employment figures on Friday.
Of course, this might be overshadowed by the US Non-Farm Payrolls at the same time.
As well this week, we have Interest Rate decisions from both Australia and New Zealand.
The prediction for both economies is to maintain the current rates but we still may get a surprise or some volatility to trade with the trend.
As far as trades today, we have the same situation on EURAUD as we have on EURCAD with price action bouncing off the upper trend line and the stochastic oscillator being very overbought.
However, you may want to wait until price falls below this key level.
The NASDAQ opened higher based on the US Congress avoiding a government shutdown over the weekend.
This caused a price action gap so we will keep an eye on this.
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