BK Big Forex Trades
Some “just in case” orders if USD/CAD or EUR/GBP retraces overnight.
1. USD/CAD Big Trade Order
Place Order to Buy USD/CAD at 1.2915
Stop at 1.2715
USD/CAD broke above 1.3000 after early gains in oil prices turned into significant losses but profit taking caused the pair to end the day below this key level. We believe that the pair will another run for 1.3000. Canadian housing starts increased by a smaller amount, reinforcing the slowdown in Canada’s economy. The wildfires in Canada continue to burn but have apparently reached a turning point thanks to light rain and wind shift. Officials say that production could be brought back online within a week. If USD/CAD closes above 1.3000, there’s no stopping the pair until 1.3200. Like USD/JPY, positions were heavily skewed towards a further decline and the velocity of the pair’s reversal could prompt a more aggressive rally as key levels are broken.
2. EUR/GBP Big Trade Order
Place Order to Buy EUR/GBP at 0.7885
Stop at 0.7685
German industrial production and UK trade numbers are scheduled for release on Tuesday. Given the sharp rise in GE factory orders and increase in German PMI, we’re looking for an uptick in tomorrow’s manufacturing sector index. The risk for the UK report on the other hand is to the downside after the sharp fall in their PMI manufacturing index. While the Eurozone would be negatively affected by Brexit, the first shock will undoubtedly be to UK assets so EUR/GBP still has further upside before a correction.