Forex trading tariff chaos – Trading long on S&P500? Forex trading short on CAD/JPY [Video]
![Forex trading tariff chaos – Trading long on S&P500? Forex trading short on CAD/JPY [Video]](https://editorial.fxsstatic.com/images/i/Equity-Index_S&P500-2_XtraLarge.jpg)
We purposely delayed this video one day to let the markets shake out after yesterday’s chaos in North America.
Well, look what happened!
Trading opened on Monday with threats of insane American tariffs on Mexico and Canada and the US indices plunged with price action gaps.
Deals were reached and prices retreated filling this gap on the S&P500.
As we were making this video, the S&P500 fell again as we awaited news about the US/China tariffs.
We went through all this so many times during the first Trump administration.
Here we go again…4 more years, traders!
Anyway, the stochastic oscillator is oversold on the 1-hour chart but the fundamentals will dictate the opening of a long trade.
As a victim of this potentially crazy trade war, CAD tanked against USD but rebounded after the deal.
If you want to trade CAD pairs, take a good look at your charts and, as always, trade in the direction of the trend.
For example, price action on CADJPY is at the upper trend line and the stochastic oscillator is overbought and crossing over.
With all this uncertainty, price action on gold has headed back to record levels.
Will it reach $3,000? Some analysts think so!
If you are looking to short XAUUSD, please wait for all the fundamentals to settle down.
Remember, we have 4 more years of unexpected bad policies to deal with.
Getting back to reality, we have employment data today from New Zealand, a key Interest Rate Decision from the Bank of England, and the US Non-Farm Payrolls at the same time as Canadian employment figures.
Buckle up!
Author
Brad Alexander
FX Large Limited
Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.
