• Consolidation Breakout setup on USD/CAD (H4)
  • Norway oil strike ended
  • Hurricane Delta dissipated

Last week, USD/CAD took a nose dive due to two main reasons:

(1) Norway Oil Strike: Local trade union Lederne called for a strike over pay and working condition dispute. As a result, oil production in Norway halted, leading to a decline in oil supply which causes oil prices to increase.
(2) Hurricane Delta: Category 4 Hurricane Delta hit the Gulf Coast last week, forcing oil companies to shut down productions totaling 7.11 million barrels of oil for the week.

Thus, the Canadian dollar strengthened against the U.S. dollar. However, the strike in Norway has ended after an agreement between Norwegian oil companies and the labour union officials was made. Also, Hurricane Delta was reported to have dissipated yesterday.

At the moment, USD/CAD’s downtrend has stagnated and is moving across without a clear direction. With oil supply coming back, we may be seeing a decrease in oil prices, leading to a weaker Canadian dollar. With that, we are presented with a Consolidation Breakout setup:

Consolidation Breakout Setup for USD/CAD (H4)
47pips range from 1.3099 to 1.3146
Buy Stop Order at 1.3166

close

Get notified when there is a new post. Read new post to earn 10 points!

1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 5.00 out of 5)
Loading...

Rate an article for points!

By Gim Hong Lee

Gim Hong has been a full-time currency trader for more than 2.5 years, focusing on day and swing trading of major currencies and their crosses. He is a frequent contributor of currency and economic analysis in Forex Trading Asia. Graduated from Columbia University in the City of New York with a bachelor’s degree in applied mathematics and statistics, the nerdy side of Gim Hong enjoys learning about data analysis, machine learning and their applications in currency trading.

Leave a Reply

Your email address will not be published. Required fields are marked *