Simon Alagbe analyzes USD/CAD on May 29, 2020, identifying a buy setup above 1.37961 with targets at 1.38189 and higher. Key data releases including U.S. core PCE and a Trump speech could move the pair that day.
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Good morning, welcome to Rally Academy's daily market analysis. My name is Alagbe Simon, a market analyst with Rally Academy. Today, the 29th day of May in the year 2020, we would be looking out for trading opportunity on USD/CAD. This is USD/CAD on the daily charts. And just as we've observed for some time now, the instrument broke to the downside of this descending triangle that was, um, 3 days ago. And with that break to the downside, a new trend line was drawn to be able to capture that move. And based on this new trend line, so we are expecting a retest on this resistance. Um, so looking at the instrument on the hourly time frame, so we can see it, um, also gradually making the move to retest this resistance at this time. So if I insert the rectangle Okay, so I'm able to mark out, um, this very crucial point for this instrument. Once it's able to trade outside of this marked out point, then we should be having our buy trade with our first take profit level on the recent high, which is at this price level. And then eventually we would have our final take profit before this, um, resistance. So from this resistance, we can then have our sell trade, um, once it's able to retest this resistance. So we can have our sell limit like 10 pips away from this resistance. So, but for today, we should be looking out for um, a buy opportunity outside of this marked out zone, and then have our first take profit at this point, and then subsequent take profit from next week towards this resistance that is marked at this point. So we have our buy trade from around this price level, and then our take profits at this price level. So how do we Um, take advantage of that move. We come to new order, and then because the instrument is not currently trading at the specified price level, so we'll be using a pending order, and that will be a buy stop at price level 1.37961, and then our take profit is at the This price level, that's our take profit one, 1.38189. And then our final take profit later next week will be around this resistance. That's like ten pips away from this resistance. But for today, let's just target this recent high on this instrument so that we'll be able to catch the pip on that move. So we place the trade. And we are waiting USD/CAD to get to this price level and then give us some money at this specified recent high on the instrument. So let's also check on the fundamental front if there's any major economic data that would also have some bearing on this instrument for today. This is forexfactory.com, and for today we can say that we are expecting a number of economic data from both Canada and then the United States. By 1:30 PM, we're expecting GDP month by month, RMPI month by month, these 2 from Canada. And as at that 1:30, also we're expecting to Uh, medium impact economic data from the United States. That's, um, core PCE price index month by month, as well as personal spending month by month. Then by 2:45 PM, we're expecting Chicago PMI. By 3 PM, revised UAM consumer sentiment. By 4 PM, the Federal Chair Jerome Powell will be speaking. And then there is a tentative speech by the president of, um, the United States. That's President Donald Trump. So this speech will likely come up anything after 4 PM today. So we should also be on the lookout for the speech by President Donald Trump. When you talk of a big mover of the market, we are talking of President Trump. So his speech will still have some impact on the movement on a lot of instruments today when he finally speaks. So let's trade profitably today and have a wonderful day.
