Trading long USD/CAD – New Zealand and Canadian interest rates in focus [Video]

I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at the DJIA (US30), WTI (USOil), NZDUSD and USDCAD. 

We’ve mentioned many times about Canadian and US employment figures being released at the same time.

Last Friday we had a US Non-Farm Payroll report that was lower than expected and a Canadian Employment Change that was better than expected.

These had double the effect on USDCAD and they drove price action into the lower range of the trend, creating an opportunity to enter a position in the direction of the current trend.

Please confirm the trade with your favourite technical indicators and be aware that we have a Canadian Interest Rate Decision due on Wednesday from Ottawa, followed by the usual press conference.

Analysts are predicting a 0.5% increase.

As well, we have an Interest Rate Decision from New Zealand where no change is predicted.

“No Change” often gives us an opportunity as there is almost always volatility.

Overall, we see mixed strength and weakness in NZD pairs so we will have plenty of chances to trade with the trend if the news drives price action in the opposite direction.

The CAD is showing us weakness now, contrary to the strength that we saw in previous weeks.

This is actually curious as the price of WTI is rising.

However, it looks like a ranging market and we will look at this from the technical side tomorrow.

Since the beginning of the month, the US Indices have been falling dramatically, probably from a sell-off at resistance.

On the DJIA we can see this obvious technical pattern forming and we will look at this from the technical side tomorrow.