US Indices: Did You Buy the Dip? Double Bottom on Russell 2000. USDCAD in Ascending Triangle.

In today’s GCI Market Outlook let’s take a look at Forex Trading on AUDCAD, USDCAD, the Russell 2000, and the S&P500.

If you caught our last video we were looking at Buying the Dip on US Indices at various Fibonacci levels of support.

Well look what happened.

Price action on the S&P500 bounced off support and headed up on Friday and continues higher today.

But watch the news from the new US government as the election results will be certified today and the new administration will be sworn later this month.

Also, with your technical indicators as we see the stochastic oscillator overbought and turning over.

Speaking of indices, we see price action in a double bottom on the Russell 2000.

We also note the almost perfect correlation with key Fibonacci levels.

So, if we see a break above the neckline at the 38.2% level, we may see some big moves.

However, keep an eye on the economic calendar this week as we have the FOMC Meeting Minutes and the Non-Farm Payrolls which almost always move the markets.

We also have monthly Canadian employment figures on Friday.

Strong rumors out of Ottawa have Prime Minister Trudeau resigning this week so expect volatility.

Meanwhile, we see a potential long opportunity on USDCAD as price action is at the lower trend line.

Again, watch the news and perhaps wait for confirmation from your technical indicators.

On the other hand, we are seeing CAD strength against some currencies like AUD.

We see price action nearing the upper trend line on AUDCAD and we will wait for confirmation.

That’s all for now.

CFDs and FX are leveraged products and your capital may be at risk.