Daily Trading Analysis 09.10.2020

Trading Analysis of USD/CAD

Head of Bank of Canada McLem: Policy has an impact on the financial system:
A strong Bank of Canada response to the pandemic was necessary, but now the economy and the financial system will be more exposed to different shocks;
It is clear that after the pandemic the level of public debt will increase;
Companies and pension funds will have to adjust to low rates;
The Bank of Canada will continue to assess the risks that credit losses may become high enough for banks to have to tighten lending terms;
A full recovery will take time, and there are many risks associated with it;
Key commodity sectors face challenges; the longer the recovery, the higher the risk that cash flow problems may turn into solvency problems. 


Our Analysis:

Provided that the currency pair is traded below 1.3220, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: short position
  • Entry point: 1.3185
  • Take Profit 1: 1.3140
  • Take Profit 2: 1.3120


Alternative scenario:

In case of breakout of the level 1.3220, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: long position
  • Entry point: 1.3220
  • Take Profit 1: 1.3250
  • Take Profit 2: 1.3275

Trading Analysis of S&P 500 Index

The U.S. stock market ended Thursday's trading with growth due to strengthening the oil and gas, utilities, and finance sectors. At the closing of the NYSE, the S&P 500 index rose by 0.80%.



Our Analysis:

Provided that the index is traded above 3425.00, follow the recommendations below:
  • Time frame: H4
  • Recommendation: long position
  • Entry point: 3446.00
  • Take Profit 1: 3491.00
  • Take Profit 2: 3520.00

Alternative scenario:

In case of breakdown of the level 3425.00, follow the recommendations below:
  • Time frame: H4
  • Recommendation: short position
  • Entry point: 3425.00
  • Take Profit 1: 3380.00
  • Take Profit 2: 3355.00


Fundamental Trading
Analysis of Facebook 

The business of Facebook is in the spotlight, and neither the pandemic nor the loud boycott could stop it. But FB stocks could be under threat as antitrust lawsuits look more and more likely. Shares fell in price this week as the stock market as a whole grew. And investors are currently evaluating the implications of the House Big Tech antitrust report.


Our Analysis:

While the price is above 241.30, follow the recommendations below:
  • Time frame: D1
  • Recommendation: long position
  • Entry point: 258.38
  • Take Profit 1: 281.30
  • Take Profit 2: 291.70

Alternative scenario:

If the level 241.30 is broken-down, follow the recommendations below.
  • Time frame: D1
  • Recommendation: short position
  • Entry point: 241.30
  • Take Profit 1: 224.00
  • Take Profit 2: 213.60


Risk Warning: Forex and CFD trading carry a high degree of risk. As such they may not be suitable for all investors. Investors should ensure they fully understand the risks associated with CFD trading before deciding to trade. Investors may choose to seek independent advice and should not risk more than they are prepared to lose.

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