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USD/CAD Signal - OPEC uncertainty - 28 Nov 2016

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Signal details
Entry Price: 
Close Price: 
Expiry Time: 
21:00 GMT
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The OPEC meeting on November 30 is a high event risk as OPEC leaders gather in Vienna to discuss and reach an agreement to freeze production levels in a bid to stabilize oil prices. OPEC leaders had in late September this year agreed to limit OPEC oil production around 32 million - 33.5 million barrels per day. However, the agreement is yet to be formalized, which could happen this week, on November 30th.

We would be purchasing daily puts on USD/CAD at 1.3500 as we expect USD/CAD to retest this broken support level to establish resistance. If resistance is formed here, USD/CAD could be seen pushing lower to the next support level at 1.3450. USD/CAD remains volatile on the OPEC meeting as Canada is a net exporter of oil prices. The current weakness in the US dollar could also add some downside certainty to the currency pair.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.