Pending a break, retest and rejection off of 122.100. We can have a great R:R long setup as many majors are starting to gain some strength back against the JPY. Let's wait for the arrows to play out before entering.
This is a critical psychological level for the USDCAD and we have two viable trade setups depending on the reaction to this level.
Ideally, we should await next weeks FOMC meeting minuets before entering.
If we get a break of the flag (ascending channel) we may see a bearish continuation to the indicate key levels. It would be ideal to enter such a trade after the Aussie Monetary Policy this Monday (if the policy is good for the AUD).
We're in a tug of war situation. Friday it seemed to be that EURUSD would make an easy transition to 1.14000. Over the weekend, the Trump Administrator and Mexican Officials were able to reach a deal in regards to the recent dispute over lax immigration control by Mexico. We did see some slippage over the weekend as a result, with the Euro and Pound gaping lower....
Fundamentals are gauging a bearish USD for Q3 which could all go out the window if a trade deal is met with China and sanctions are removed against Iran. Technicals pointing to near term weakness as DXY is on its way to 97.6xx region.
The next few hours can determine whether we have a long or short trade on our hands, both of which will have a great R:R ratio. The arrows indicate what we movements are needed for such a trade(s) to be taken and be taken with the highest certainty.
Gold has broken out of a three month down trend and has pushed up to near term resistance. We are at the brink of either breaking this resistance or respecting it. Based on recent fundamentals (weaker USD overall) and the rise of the price of palladium, I say that we have good chance of moving higher.
First we need to break and close above 1305.88, and either...