USD Up, Commodities Down

August 31, 2016

USD CB Consumer Confidence: 101.1 v 97.2 expected

Ahead of the all important NFP number on Friday, US consumer confidence saw a nice little uptick, inspiring the bulls to kick on.

The price of Oil continued to fall, as a strong USD and the usual plethora of headlines wreaked havoc on the price of commodities.

Oil Hourly:
Click on chart to see a larger view.

Tied in nicely here, the Canadian Dollar instead focused on the price of Oil. It seems as though disappointment is an inevitable outcome for the Oil market, and with every non-financially minded person still having to get from point A to point B in a petrol powered vehicle, is one instrument that makes an excellent mainstream headline.

Headlines that are almost a self-fulfilling prophecy, in that the market moves off of headlines and then headlines move the market.

Mind blown? Welcome to trading psychology 101!

USD/CAD Daily:
Click on chart to see a larger view.

Looking at the daily chart and you can see while we had that very defined, short term bearish trend, price has all but retraced it and is back heading in the direction of the higher time frame, bullish trend.

USD/CAD Hourly:
Click on chart to see a larger view.

The hourly chart shows that re-activation nicely and says we’re probably looking for a continuation from here back into the marked channel.

Stay safe!


On the Calendar Wednesday:
AUD RBA Assist Gov Debelle Speaks
NZD ANZ Business Confidence

Take advantage of the market narrative on a Forex trading account with Vantage FX.

Dane Williams – @VantageFX

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