Hello Traders,
The economic calendar is short of market moving events today but DPKK is obviously a step ahead in surprises. While the FX market is always volatile, any war threat will always leads to capital flight to Gold and Yen. As you can see, Gold actually gapped up after that missile flew over Japanese islands of Hokkaido while the Yen despite being the target gained against the greenback. From recent speeches and comments, only monetary policy hints and war threats are market movers. Economic data is not that important as we close the 3rd quarter of the year.
In my opinion, only this week’s NFP will be market mover and therefore good buy or sell signals which form before then are good opportunities to go long on either Gold, Yen, Euro or GBP. Today though, I will trade NZDCAD. The reasons for this is simple. In the monthly chart, bear momentum is strong while the 4HR chart has formed a clear 3 bar reversal candle and a clear sell signal.
I will therefore trade as follows:
Sell: 0.9030
Stop Loss: 0.9090
Take Profit: 0.8870-1:2 risk reward.
Have a good trading day.

nzdcad 4hr chart-29.08.2017

Source: Dalmas Ngetich

nzdcad monthly chart-29.08.2017

Source: Dalmas Ngetich

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