LEARN TO TRADE MAJOR FOREX NEWS EVENTS – USD/CAD FOREX TRADING STRATEGY FOR THE TRADE WARS AROUND THE WORLD
Hi Traders,
Today’s article is going to be one which aims and supports all those who are looking to take advantage of the current Trade War and traders who like trading Forex news in the market. Forex news trading strategies are ideal for short Intraday trades as you can be in and out of the trade very quickly. Understanding how to trade Forex news events is a vital skill for full-time traders and important for any part-time trader to understand too.
With economic news from Canada and Mexico in the front of everyone’s mind, here is how Platinum will be approaching the Forex news event and how we are looking to profit from the economic data with our reversal trading strategy, a strategy that is perfect for trading Forex news like this.
LATEST ECONOMIC NEWS ON TRADE SANCTIONS
The Trump administration leaves no stones unturned when it comes to exerting enormous pressure on Iran as it targets to cut off all Iranian oil exports by November. The move sufficiently highlights President Trump’s overture to throw away the nuclear deal with Iran in the year 2015. Rather, the U.S. Administration now prepares to launch an offensive on the economic news front with Iran.
A COMPLETELY PARALYZED BILATERAL RELATIONSHIP
The decision of U.S.A. for its withdrawal from 2015 deal has paralyzed the bilateral relationship between it and Iran. The mounting sanctions have come in the wake of the superpower’s tactics to disengage Iran from its nuclear projects. This has led to unrest throughout the world as the president Trump has openly come out in his tweet that any Company doing business with Iran would not be permitted to do business on U.S. soil.
A DIVIDED WORLD OPINION
Despite the growing unrest and chaos, China has taken a different stand; it has disagreed to stop any trade with Iran as both the nations are engaged in a deal over energy. It would not stop importing its $15 billion worth crude oil even if the U.S.A. moves ahead with more sanctions. The most important highlight of the situation is European Union (EU)’s High Representative for Foreign affairs, Federica Mogherini, has taken the vow to save the deal between Iran and China and this high profile office bearer has also requested the European nations to continue their projects in Iran as before despite the possibility that it would put EU’s relationship with U.S.A at stake. Moreover, the EU, China, and Russia have come up strongly against the one-sided deal taken up by the U.S.A. against Iran.
IRAN-WHERE DOES IT STAND?
In the organization of the petroleum exporting countries (OPEC), Iran’s position as an oil producer is by no means negligible. It is the third largest after Saudi Arabia and Iraq with an outstanding production of 4 million barrels in a day. To add to it, everyday export of 2.1 million simply makes it a giant in its own right. Frankly speaking, oil revenue has made this nation survive despite the global sanctions and aggressive foreign policy of U.S.A.
HISTORY SAYS SANCTIONS ARE CLUMSY TOOLS
It has been more than 34 years from the since the seizure of the American Embassy and economic sanctions have stayed U.S.A.’s tools for dealing with Iran. International experts describe the sanctions are only symbolic than strategic moves. But the result has played a devastating role in the economy of Iran. It has reduced Iran’s oil exports, revenues, and value of its currency and shattered the confidence of people of Iran. The sanctions have now the only credibility of turning Teheran’s aggressive leadership into a moderate one. Those have only facilitated a breakthrough in the controversial nuclear issue in Iraq.
On the other hand, this has intensified the debate over sanctions throughout the world. Critics say that such sanctions disallow the Iranian leadership to come to the table for negotiation. In a recent statement, issued by Iran’s Foreign Minister Mohammad Javad Zarif to the TIME magazine, clearly says that its leadership does not want to negotiate under duress. And if American Congress takes to sanctions, it would prove that the moves of the superpower are whimsical and lack the directive to reach a solution.
LEARN TO TRADE USD/CAD THROUGH THE TRADE WARS
Forex Technical Analysis on the USD/CAD
From the technical chart, we can see that we are looking for a Breakout, pull back and continuation trade. This is due to Oil being in a much stronger position then it was previously in the year which is helping to push CAD higher. This, in turn, has brought the loonie down as CAD strength cancels out USD strength. The level at 1.3000 is now a critical level for trading and should be treated as so. We can see some distinct forex chart patterns that could create some profitable trading opportunities.
Wait for a breakout of 1.3000, then go Short on the Pullback @ 1.3000 with a 40 pip stop loss and a target of 1.2880
Keep up to date with our Forex blog for more trading opportunities on upcoming Forex news events.
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Nisha Patel
Live from the Platinum Trading Floor.