USD/CAD @ 1.2976. S/L raised to 1.2930. Today, I checked on my long USD/CAD position in the Sydney session. USD/CAD had gap up nearly 75 pips to 1.3000. After the G-7 summit in La Malbaie, Quebec, Canada, Prime Minister Trudeau said that Canada will reply with retaliatory tariffs to the tariffs on aluminum and steel by the United States. Unfortunately, a trade war between Canada and the United States would be a war that Canada would lose. Why? Seventy-six percent of Canadian exports are sent to the United States, whereas twenty-one percent of U.S. exports are sent to Canada. This explains the 75-pip gap up in USD/CAD over the weekend.
I do like your good fortune with this trade, but for me, exiting after a gap up would be a good play, due to possible attempts to close the gap.
We've closed weak on the thirty minute bar. lets see how high we pull up before we go down to retest the support band.
Two weak closes on the 30mn, but the balloon machines are on. Price action similar to earlier last week.
Crude is on the firm side, 30mn bands are wide and it appears we are having trouble in the 65.66 area. 200ma on the 60mn. Over or back down?