Last week, the spread of corona virus on a large scale and the global stock market crash was the focus of investors. Opening the first trading session of the week, the market saw some slight reversals. However, with the disease situation heavily affecting the economy, the trend that continued last week will continue to be not surprising.
Another focus is OPEC's production cut with potential Russian support, in the words of Russian President Vladimir Putin before the OPEC + meeting on 5-6 March in Vienna. Saudi Arabia is pushing for rapid cuts in oil production to make up for the reduced demand due to coronavirus.
This week, the CAD (fluctuating in oil prices) will react to news surrounding the OPEC meeting, gold and stock prices, along with the coronavirus situation. Meanwhile, the Fed is likely to cut interest rates, putting pressure on the US dollar. The Bank of Canada meeting this week has also been of great interest to many investors.
On the technical chart, the USDCAD currency pair rose sharply, breaking the downtrend line from 1.3664 to 1.3564. However, on the daily chart, USDCAD has not yet broken out of this downtrend line. This will most likely create a fakeout candle and reduce the probability of winning on buy orders at Demand 1.3293 and 1.3258. In order to minimize risks, investors should execute buy orders at the Demand area of 1.3258 provided that the trendline increase from 1.2957 to 1.3036 is not broken.
Stop loss 1.3195
Take profit 1,351
Recommendation: This is just a Trading Idea. For more accurate analysis, you should incorporate other indicators that you have mastered. In particular, always focus on capital management methods to prevent any possible market situation.
Author: Nguyen Chi Thanh
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