Main trading ideas on Commodity and Foreign exchange markets for 23.08.2018

USDCAD

There was no important economic data on the market Yesterday, except Retail Sales in Canada, EIA Crude Oil change and FOMC minutes. Unfortunately, FOMC release had not enough influence on the US dollar while most of key takeaways were predictable by the investors. For example, there was expectations of the stable inflation near 2% and rates moving closer to estimates of neutral.

Retail Sales in Canada were at -0.2% in June, while forecast was rising to 0.1%. However, follow-up US economic data also was worse than expert’s predictions. That is why USDCAD continued slow falling until the end of trading session to 1.2992. Today we see strong signal for buyers – bullish engulfing on the daily chart. We recommend buying USDCAD from current levels to 1.3150-1.32 levels.

Brent OIL

EIA change release supported Brent price showing reduction in oil reserves more than expected. The forecast of analytics was about -1.5 million barrels reduction while EIA reported -5.8 million barrels in USA. These news helped Brent price to rise above $74th level and test $75th strong resistance.

The Cayman and Technical analysis show that more investors pass to the side of sellers, but we see, that Brent price can growth to $77 resistance level still. Considering the fundamental and technical picture we are ready selling after rebound from the $77th level.

So our targets for:
USDCAD – is buying to 1.3150-1.32 levels
Brent Oil – is selling from 77$ level