I hope you enjoyed the Easter break, and have had a good week returning to business. Markets got off to a jittery start on Monday, as fears over a trade war between the US and China intensified. Whilst the S&P 500 futures sold off, the US Dollar Index (DXY) was relatively more stable, which further validated the case we made for USD looking at our Checklist last week. USDJPY was a notable mover, which remains on our watchlist. Elsewhere, the FANG names may have formed a bottom (whether short term, or longer term remains to be seen), led by Facebook following CEO Mark Zuckerberg’s comments which reassured investors.
In this week’s Trading Club meeting we looked at a continuation of the dollar theme, focusing on Crude Oil and the implications for the Canadian Dollar. As you can see, Crude has been in something of a consolidation range recently, but our Checklist has maintained its bias again this month (I won’t reveal +ve or -ve, out of respect for our paying members!) - indicating that it should soon break out. Right now though, it’s at the flattening 50-day moving average, which tells of indecision amongst traders.
Turning to USDCAD, which is often said to lead moves in the broader US Dollar Index, we can also see that the currency pair is sat right on its 50-day moving average (blue). I noted the bearish negative RSI divergence in a recent video for our members, which has since played out and dictated the pullback to where it is currently trading. Again, as a courtesy to our premium members I don’t wish to reveal which way we are viewing this chart, but what I can say is that this setup looks very interesting.
Time will tell how this ultimately plays out, but we are able to identify these opportunities and approach them with clarity and confidence as a product of our Checklist trading process. If you would like to learn more, and get immediate access to this video analysis plus an archive of our 12 most recent videos, you can join us with no commitment beyond 30 days with our 1-month membership option (or get a better rate if you opt for 12 months in advance). Also, we have extended our promotion qualifying you to receive 3 months of Trading Club membership for FREE included as part of our Million Dollar Traders Course. If you would like more information about any of this, please reply to this email or send a message to [email protected].
Have a great weekend, and happy trading!
James Helliwell | Chief Investment Strategist
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