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Market View

A potential USDCAD Setup before OPEC

Monday, April 15, 2019 2:04 PM GMT

A probable bullish scenario can pay-off for USDCAD as we are heading towards Wednesday’s OPEC meeting were decisions on oil supply will be updated.

A potentially rewarding entry level could be the low 4hour Bollinger Band. The scenario should seriously be considered busted if the pair crosses bellow the 1.3290~1.3280 level.

4H Timeframe

Strengths of CAD:

  • improving macro readings: GDP, inflation, current account, trade balance, manufacturing sales, wholesale sales, retail sales (new release is expected on Thursday), housing starts.

Weakness of CAD:

  • Elections are scheduled to occur in October.
  • the Brent rally would need additional news to manage to go further.
  • deteriorating macro readings: employment change, labor productivity, capacity utilization, Manufacturing PMI, Ivey PMI, corporate profits, foreign securities purchases, building permits.
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