In today’s live trading session we went over Jerome Powell’s comments regarding the US Economy as well as trade setups for the week.
Early this morning, Jerome Powell indicated that the Federal Reserve will take a “by any means necessary” attitude in regards to fighting off economic slowdown caused by Covid-19. He said the Federal Reserve is open to using all tools to combat this pandemic and ensure the effects on the economy aren’t long term. This led to major gains in the majors as the US Dollar Index soared back to 99.50.
For the rest of the session, we tried to make sense of the major moves that happened over the weekend. We found an opportunity to long USDCAD as it is moments away from major 4hr support. If we do see any bullish reactions from this level, we will be looking to go long. We also identified a short for NZDJPY. This pair has made substantial gains in the last 48 hours, but price has stalled at the current daily resistance. If rejection candles are seen on the 4hr time frame, the short will be entered.
As yesterday was a Canadian bank holiday, our trading week has been condensed into four days. We will be on standby ready to enter the next available trade setup. We should have entries very soon for USDCAD, NZDJPY and USDJPY. We do have a slew of Euro manufacturing data being released on Thursday so some pairs may consolidate until then. The important thing is we stay adaptive. As always, be safe and trade responsibly!
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