Late U.S. Session In Focus-Macro Resistance Coming Up For The USD/CAD
Shain Vernier • 2 min read
As we pass the midway point of the forex week, there are several key events occurring during the U.S. overnight session. It is a theme we discuss a lot here at FX Leaders, but market fundamentals are crucial to the currency trade. Today’s session has certainly reinforced this idea, with U.S. GDP coming in positive boosting the U.S. equities indices.
Tomorrow marks the final day of November. End of month trading can be a challenge as institutional money attempts to balance their books. Here are the coming events that will shake up our markets and bring big money players to the table during the late U.S. and overnight forex sessions:
New Zealand Building Permits(Oct.)
Japan Foreign Investment(Oct.)
China NBS Manufacturing PMI (Nov.)
Switzerland Gross Domestic Product (Q3)
Germany Retail Sales (Oct.), Unemployment Rate (Nov.)
Eurozone CPI (Nov.)
U.S. Core Personal Consumption (Oct.)
The releases out of Japan may bring the earlier trade recommendation for a USD/JPY short into play. Currently, the USD/JPY is trading near 112.00, just under the 112.25 entry. I will be monitoring this situation closely.
I mentioned it earlier today, but the U.S. Senate is in the process of rounding up the votes necessary to pass the Trump tax plan. The Senate has been known to vote on key issues during strange times. In the event that a vote comes to pass, be sure to have your open positions protected.
For Tuesday’s session, I outlined a short trade recommendation for the USD/CAD. Today’s bullish action has brought a macro resistance level closer. For complete details on how to trade this level, click the link and check out the detailed trading plan.
USD/CAD, Daily Chart
The USD/CAD has extended gains over the past three days. The current session’s gain of over 40 pips has price within striking distance of our short entry. We will see what happens for the rest of the day, but a test of the triple top beneath macro resistance should produce a premium entry to the bear.
Until tomorrow, trade smart and keep an eye on the news!