PrymFX Forex Newsletter - October 7th, 2020

There is so much going on these days that we have a hard time knowing where to start. We have highlighted various instruments in previous posts today. Given the quick nature of the market at this time, we may need to publish more individualized analysis versus newsletters. The nature of the current environment is favoring fast trades and setups can turn from short to long (or vice versa) very quickly. As such, expect more one-off posts until things clear up.

USD/CAD

This pair, USD/CAD, is sitting at a very long term support spot. This instrument is highly reliant on the price of oil, with oil stalling around the $40 level its no surprise this is stuck. We believe the DXY will strengthen in the near future and as such we expect oil to weaken, dollar to strengthen and this pair to go up to the next resistance at 1.3400. Wait for a proper short-term setup in the 1hr or 4hr timeframe before initiating a long position.

GBP/USD

Brexit, Brexit, Brexit. That is basically the main driver to this pair at the moment. So much indecision and uncertainty, which is very much reflected in the chart. We expect it to continue between our two moving averages between 1.2825 and 1.3000 for two weeks until we get clarity on Brexit.

DXY

The dollar index had gone into sideways action for the better part of the last week. Since the stimulus p