US Nonfarm Payrolls in focus – Silver breaking upper trend line, OPEC meeting [Video]
|In today’s Market Outlook, let’s take a look at Forex Trading on XAG/USD, WTI Crude Oil, the EUR/USD, and USD/CAD.
Everyone, especially the Fed, is waiting for the US Nonfarm Payrolls, aiming at very low numbers now.
How should we trade this?
Firstly, a number lower than expected will confirm to the Fed that they should lower interest rates this month.
That will cause USD to weaken ,but we see mixed strength and weakness on USD pairs.
USDCAD, USDCHF, and USDJPY show us USD strength.
However, it’s the opposite with EURUSD, AUDUSD, and GBPUSD.
In any case, after the results today, after the dust settles, today or early next week, few want to open positions WITH the trend.
For example, we can see on the USDCAD daily chart long-term and short-term bullish price action.
Therefore, if the news goes against the trend, we may have an opportunity to trade WITH the trend later.
As it is right now, we see USDCAD on the 4-hour with price action trying to break the lower trend line.
If price action falls to support on the news at $1.379 or $1.375 , we will assess the technicals and fundamentals and consider a long position.
I encourage you to look at all USD pairs in the same way, either long or short.
Speaking of USDCAD, the Canadian dollar may be affected by the OPEC meeting on Sunday.
WTI and Brent Crude are showing no clear direction, but if OPEC decides to increase production, we may see a Monday morning gap to the downside.
If that is the case, we may have a nice gap trade to consider.
But, as always, check your technicals and check the news.
Price action on WTI almost always affects CAD, and, like USD, we have mixed strength and weakness.
This may give us lots of opportunities on Monday.
And finally, on silver, we see a downtrend and a very overbought stochastic oscillator on most time frames.
But, be careful, this might be just a bullish breakout from a falling wedge.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.