- 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
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