Aug 27 – Top Forex Setups to Trade On Summer Bank Holiday
Arslan Butt • 2 min read
Welcome back to another exciting week. UK banks will be closed in observance of the summer bank holiday. Therefore, the financial markets can exhibit a thin volatility as there’s literally no major economic event scheduled for today. However, it will be nice to trade the choppy trading sessions to capture quick 25/30 pips in each trade. Who’s up for them?
Quick Update on the U.S. Dollar
The dollar index got another boost after the Fed chairman said that the US central bank’s push to lift interest rates as healthy for the economy and indicated more hikes were coming despite President Donald Trump’s criticism of higher borrowing costs.
Taking a look at the technical side of the market, the dollar index has finally completed the 61.8% Fibonacci retracement at $95. On the daily timeframe, there’s a bullish trendline which is also extending a significant support near $94.85.
Moreover, the RSI and Stochastics have entered the oversold zone. Is it time for a bullish reversal? I must say the dollar index is very likely to continue trading bullish above $94.85. The violation of this level can extend sell-off until $94.
USD/CAD – Sideways Range
During the previous week, the USD/CAD continued to trade in the sideways range of $1.2990 – 1.3090. It’s a 100 pips range. Earlier, the USD/CAD was trading in the bearish channel which was providing it a strong resistance near $1.3000. The commodity currency managed to violate the pair on weaker dollar concerns.
USD/CAD – 4 Hour Chart
At the moment, the USD/CAD is trading at $1.3020, below the strong resistance level of $1.3090. On the 4- hour chart, the pair is in strong selling trend. The RSI and Stochastics are holding near 25, suggesting a selling sentiment of investors.
USD/CAD – Key Trading Levels
Key Trading Level: 1.3039
USD/CAD – Trading Plan
Traders are advised to keep a closer eye on $1.3035 as above this level the USD/CAD can stay bullish until $1.3070. The bearish violation of $1.3035 can lead the pair towards $1.2980. Good luck and stay tuned as more trade setups are on the cards…