Hey y'all. Because I do not know what is going to be talked about in the OPEC meeting today, and don't care to follow it (because I'm lazy as hell), I will only trade the market's reaction to the risk-event and use historical price analysis to make a trade decision today. To get a clearer sense of market sentiment, please follow the OPEC meeting (it'll bolster your trade basis). What I do know is that both the Russians and the Saudis have agreed to extend the oil
production cuts to 9 months instead of 6. If the Russians and the Saudis agreeing on something doesn't shock you, it should. In the past, the Saudis have known the Russians to not deliver their end of whatever bargain they strike and so we'll see. While commodity traders will be all about oil
prices and production e.t.c, I will be buying the US dollar
against the Canadian dollar
and double-downing (by double-downing I mean sell of the units I buy today and then short some more) on it tomorrow until market closes.
Another key data set to be released today is the US trade balance. Per Bloomberg, it is expected to reduce the size of revisions to GDP growth in the second estimates.
The blue-ish diagonal rectangle
is my buy zone, although current market price is pretty close to it. I could play it safe and wait till price returns back to the zone, or I could be a lil aggressive and buy at market.
Also note that the pair has been trending down for the past 9 days and so each retracement to the diagonal support is short-lived and is only about 90 pips.
Trade smart and best of luck, y'all!