Trump's twitterbombs: OPEC Pushes Forex USDCAD

Trump's twitterbombs: OPEC Pushes Forex USDCAD

On this week’s roundup of Donald Trump’s tweets, we look at a very important tweet that has a major impact on the oil markets and consequently the USDCAD.

For the past month, we have been seeing oil prices taking a tumble, ever since it reached a yearly high in early October. Being the world’s dominant economic power and one of the world’s largest oil exporters, the US has a great influence on the oil’s price movement. As usual, Donald Trump likes to share his input over twitter. Here is a tweet that has presented us with a great trading opportunity for the week ahead.

Be ready for the Trump effect

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In this example, we witness a major bearish drop after Trump’s tweet on US OIL. The US OIL has been on uptrend hours prior to the tweet. However, Trump feels that the oil price is still rather steep given the supply in the global market. Thus, he tweeted out that the oil price “should be much lower based on supply!”

Traders can take advantage of such opportunities by having a good fundamental understanding of Trump’s tweet and the market that it may affect. In this scenario, it is clear that this tweet has a bearish bias on oil prices.

Trading USD: Crossing the line

A trader can take advantage of such trading opportunities by utilizing the Ichimoku Cloud to ride the momentum of such moves, along with playing a reversal using basic horizontal resistance. A trader can prepare to sell US Oil when the price reaches a previously support-turned-resistance, and also when the price has crossed below the Ichimoku cloud. To decide when to close off his position, a trader can wait for at least 5 bars to consecutively close above the Ichimoku cloud before closing off his position. Utilizing such a strategy would have bagged a good 107 pips profit from this setup already. Anyone interested to take advantage of this social media phenomenon need only open an Exness account and wait for the next twitterbomb article to be published here on FX News.

Be ready for the Trump effect

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This article is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. This article is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the article. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its articles.