A slow start to the trading week…
The market has been relatively quiet during today’s Asian session so far with the lack of any important data releases as well as bank holidays for GBP and USD. The overall risk averse tone has improved over the weekend as it looks like there is chance that the summit between US and Korea might still be on track again. Elsewhere, CAD has remained under pressure from Friday’s OPEC announcement that they might decide to lift some of the production restrictions in their June meeting.
Also, president Mattarella rejected the Eurosceptic Paolo Savona as a candidate for the next Italian Economy Minister, as such Conte who was the running candidate to be the next PM has given up his efforts to form a new government. The market has viewed this as Euro positive, for the time being.
Our pair selection for today:
Given the CAD weakness and EUR strength we have chosen the EURCAD as the highest probability pair to look for opportunities today.
EURCAD – M30
EURCAD – H4
This trade idea is a very short term trading opportunity. Given the current negative bias on the Euro there is an obvious risk in looking for long positions, and we do not want to try and catch a falling knife. If we see a pullback to recent support areas there might be an opportunity to look for a possible long position, however this will mean buying into a very strong current downtrend.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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