US Indices Rebounding. Forex Trading Gold (XAUUSD) Flying Higher! Trading Long USDCAD. Brent Crude in Rising Wedge.
How does the price of oil affect CAD?
In today’s GCI Market Outlook let’s take a look at Forex Trading on USDCAD, Brent Crude, the S&P500, and the NASDAQ.
Earlier this week we looked at buying the dip on US Indices and it certainly worked out on the NASDAQ and others.
We spotted the entry point here with this hammer candle on both the S&P500 and the NASDAQ with the stochastic oscillator oversold and turning up.
There was a selloff on the 19th but, if your stop loss was below the low of this candle, you would have been safe.
At this point, we had reversal signals from the stochastic oscillator and MACD and the bull run continues.
We may look at increasing the position if we see a pullback into the lower trend line here.
Price action on Brent Crude has formed a rising wedge and the stochastic oscillator is heading into overbought territory.
This may mean a reversal to the downside but watch for news out of the Middle East and rumors ahead of the December 1 OPEC+ meeting.
If we do see a fall in oil, we may have a long opportunity on USDCAD where we have technical indication of an impending reversal.
Gold has returned to its safe haven status as geopolitical events and US political uncertainty escalate.
From the technical side, we see the stochastic oscillator in overbought territory but we also see MACD in a bullish mood.
If we add Fibonacci we see price action at a level of resistance so we will wait for a break either way.
If we move out to the daily chart, we have 5 clearly bullish candles, an overbought stochastic oscillator and MACD that can’t quite make up its mind.
That’s all for now.
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