For today's trading setup, I have chosen USDCAD; I am waiting for a correction and have placed a buy limit at the nearest support level—specifically, the hourly middle band. The Canadian Dollar is expected to continue weakening, while the US Dollar strengthens.
Looking at USD/JPY today, M15 price action shows a sideways or range-bound pattern. The daily trend leans bullish due to USD strength. I am placing a buy limit order at the nearest support level, along with a stop-loss.
On Tuesday, I traded the USDCAD pair by placing a buy limit order near the lower band on the 15-minute chart. The Canadian dollar has been tending to weaken, largely driven by the strengthening US dollar—a result of high US Treasury yields and expectations of a Federal Reserve interest rate hike.
The USDCAD position is currently floating, with price action confined to a relatively narrow range. The price experienced a sudden drop but recovered quickly; this is evident in the M15 timeframe. I am leaving the current position open without modifying the order.
I am holding my USDCAD position today, though I have adjusted the stop-loss to lock in the floating profit. However, yesterday's US PCE data came in lower than expected, which could potentially weaken the USD.
I am keeping my USDCAD position open today. Despite yesterday's correction, the stop-loss hasn't been hit, and a rebound pattern is currently forming on the hourly chart; hopefully, this will prove to be a valid signal ahead of today's NFP data release.
Today, I’m focusing on XAUUSD. Reports indicate that US Treasury yields are softening, and market expectations for a Fed rate hike have declined due to US labor data coming in weaker than anticipated. I’ve opened a short-term buy position on the M15 timeframe.
The price of silver is hovering around the 60,919 level. With the Bollinger Bands contracting, silver appears to be consolidating within the 60,640–61,059 range. I am initiating a sell position here, placing the stop-loss above the resistance level. Expectations that the Fed will keep interest rates "higher for longer" are driving the selling of gold.
NZDUSD is currently under pressure near the support area. The USD remains strong, but there is potential for a technical rebound in NZDUSD, given that it is already in the support zone. I am taking a long position here and placing a stop-loss below the low, in accordance with my risk tolerance.
