Aug 06 – Top Forex Setups to Trade While Global Markets Enjoy Holiday
Arslan Butt • 2 min read
Welcome back to another exciting week.
On Monday, the global markets are closed in observance of the civic day in Canada, while the traders from the United Kingdom enjoy the summer bank holiday. That’s why we got nothing on the fundamentals side. The forex brokers will provide the trading services, but markets are expected to remain muted due to the absence of trading volume. Considering this, we will be looking for quick trade setups.
Quick Update on the U.S. Dollar
The Greenback generally had a positive week on the back of major catalysts. The Federal Reserve kept the rates on hold at 2% as expected and made only minor tweaks to the statement.
However, the ongoing trade war sentiments between the U.S. and China are spreading uncertainty in the global world. Looks like both economies are ready to speak again after the U.S. stated it was interested in slapping a higher tariff of 25% on $200 billion worth of Chinese goods.
Lastly. the U.S. Non-Farm Payrolls came out exactly as foreseen on wages but missed on job growth with only 157K in July. However, the average hourly earnings and unemployment rates were better than before.
USD/CAD – Bearish Channel
During the previous week, the USD/CAD continued to trade sideways, below a strong resistance level of $1.3100. The commodity currency Loonie gained support after better than expected GDP figures from Canada. Thereby, the USD/CAD violated the triple bottom support level of $1.3110. For the moment, it’s trading bullish near $1.2975, right above a solid support level of $1.2975.
What makes this level ($1.2975) more interesting is that the RSI and Stochastics holding near 50 and a bullish crossover can offer us a buying opportunity.
USD/CAD – Key Trading Levels
Key Trading Level: 1.3018
USD/CAD – Trading Plan
Traders are advised to keep a closer eye on $1.3020 as the USDCAS can stay bearish below it until $1.2975. The violation of $1.2975 can lead the pair towards $1.2935.
EUR/USD – Bears Dominates On Stronger Dollar
The major currency pair EUR/USD has come out of an ascending triangle pattern to trade near $1.1555. The 50 and 100 periods MA are suggesting a bearish bias of traders while the RSI and Stochastics are also trading below 50.
The pair tried to violate the strong resistance level of $1.1615 but failed to move higher. For now, the immediate resistance seems to be at $1.1535.
EUR/USD – Key Trading Levels
Key Trading Level: 1.1624
EUR/USD Trade Plan
The idea is to stay bearish below $1.1600 with a stop above $1.1635 and take profit of $1.1535. Good luck!