USD Flies Up While Commodities Go Down

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USD CB Consumer Confidence: 101.1 v 97.2 expected

Before the NFP number on Friday, US consumer confidence saw a bit of a rise, encouraging the bulls to kick on.

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

Oil hourly

Oil hourly

Tied in nicely here, the CAD 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

USD/CAD daily

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

USD/CAD hourly

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!

This Wednesday

AUD RBA Assist Gov Debelle Speaks

NZD ANZ Business Confidence

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This is a guest post originally appeared on Vantage FX. Reposted with permission.

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