In today’s live trading session, we went over the current status of the US Dollar, and then we discussed a possible swing trade for CADJPY.
We started the week with a bullish bias for the US Dollar. The Dollar had its struggles with resistance at 93.13, but it finally broke through earlier during the London session. One of the main reasons for the resurgence of the Dollar was the European Union reintroducing lockdowns to battle Covid-19. The United Kingdom also shares the same belief. Due to this, both EURUSD and GBPUSD melted and the US Dollar was able to reclaim the throne.
As for setups to take, we have our eyes set on CADJPY. This pair has spent the past few months attempting to rally higher to no avail. The time to short this pair back down to March lows is approaching us. In order to enter this trade, we need price to close bearish on the daily time frame below July’s low. This will confirm our beliefs and validated our trade analysis.
Tomorrow will be a very important day for the US Dollar as we will have the release of its GDP numbers as well as the number of unemployment claims filed in the past month. Market volatility will be extremely high during that time period, so please manage risk accordingly. As always, be safe and trade responsibly!