March 2 – Economic Event Outlook & Top Trade Setups
Arslan Butt • 2 min read
The financial markets are ready for another round of high impact economic events today. That being said, there are some quick trades to be made today in the Loonie and the Sterling. Here are the top economic events to trade today.
Watchlist – Top Economic Events
British Pound – GBP
Seems to be a good day to trade Sterling pairs. But, be very careful as the market may change trends after Prime Minister May and BOE Gov Carney’s speeches.
Prime Minister May Speak
In London, May is scheduled to speak concerning Britain’s post-Brexit relationship with the European Union: the UK government would like to keep up with the European Union. Their continued partnership in a single market is likely to undermine the Sterling and vice versa. Follow us for more updates on when the speech will take place.
BOE Gov Carney Speaks – London 10:00 (GMT). Carney is due to speak about the evolution of money and the emergence of crypto-currencies, crypto traders should listen carefully.
Construction PMI – The figures are being announced at 9:30 (GMT) with a positive forecast of 50.5 vs. 50.2 previously. Overall, a figure above 50.0 indicates industry expansion and below indicates contraction.
Canadain Dollar – CAD
GDP M/M – The data will be watched at 13:30 (GMT) as the Canadian economy is forecasted to grow by 0.1% vs. 0.4% last month. This provides a good opportunity to close this week with nice profits so wait for divergence in the forecast. It will pay off.
Top Forex Trade Setups
Yesterday, the Greenback weakened after the Trump administration decided to impose a tax on steel and aluminum imports. In response, the dollar weakened with a sell-off in the global stock over concerns that the decision could lead to a trade war between the US and China.
USD/CAD – Bearish Swan Playing Nicely
In our earlier report, we discussed the “bearish Black Swan” harmonic pattern. On the 4-hour chart, the pattern reached to a near 2% extension at $1.2895, as we suggested yesterday. The idea was to wait for the market to get near $1.2900 before placing a sell entry.
USD/CAD – 240 Min Chart
At the moment, the Loonie has dropped to $1.2830. We are expecting a slight pullback in the pair, up to $1.2865. However, the $1.2900 remains an extremely solid resistance level to sell the pair. Keep in mind, we are also expecting a GDP figure from Canada.
USD/CAD – Key Trading Levels
Key Trading Level: 1.2845
USD/CAD – Trading Plan
It will be nice to wait for a slight pullback, until 1.2865/75, before placing another sell position. A break above $1.2900 will open additional room for buying until $1.3000.
Good luck today and have an excellent weekend!