A1 Trading Company

September 20, 2021

USD/CAD- Volatile Market Sets Up For Big Move

Frank Cabibi

9/20/2021

Today is a federal election where 338 members will be added to Canada's parliamentary system in a turbulent race caught in a dead heat. Current prime minister, Justin Trudeau, and his liberal party are now one percentage point behind the conservatives in the election. This is causing some major volatility for the loonie in the wake of a strengthening dollar.

Our outlook

I think the USD has the potential to run away with all the momentum as uncertainty in the Canadian parliament election. Expectations of the Fed tapering this year are getting higher an higher as bond yields crumble to February levels and 1.32% this morning. Risk-on sentiment towards stocks and crypto are dwindling in the wake of fears of regulation and global uncertainty. When this starts happening, investors turn to safe spots like the USD. So, we could see an increase in demand for the dollar this week as FOMC economic projections will come out this Wednesday followed by Powell's testimony later in the week.

Trade Setups

USDCAD

USDCAD on the 1D chart has been in a tug-of-war behavior for months now as the pair might have started to form a head and shoulders pattern if the dollar can't find any more strength on the day. It's not exactly a head and shoulders though as this second "shoulder" is noticeably significantly higher that the first; there are also higher lows on this timeframe that suggest a move higher. The pair might have good momentum may catch more momentum if price can close above the 1.28055 level (previous shoulder).

A1 Edgefinder

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

Will Big Tech Earnings Save Indices?

This week is full of earnings from big tech as we wait for Google, Microsoft, Meta, and Tesla. This month has been mostly in the red and are coming off a 6-day losing streak in the S&P. With tensions in the Middle East escalated, earnings hopes to save the markets. EdgeFinder Analysis Silver sits at […]

Read More
The Shift is Finally Here

Indices continue to hurt as the US economy points further towards higher inflation this year. The Fed now has to decide whether or not it is worth cutting rates so soon. And if rate cuts are off the table, the sentiment shift might have redirected back to risk-off. EdgeFinder Analysis GU is one of the […]

Read More
Dollar Remains Strong

Indices recover from Friday's lows as the dollar index hovers at break even. The mounting tensions in Israel-Iran escalated market worries, but financial earnings have kicked off to a good start. EdgeFinder Analysis Retail Sales came in higher than expected which is a good sign for the economy. It's also strong for the USD as […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenumenu-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram