Trading Plan – Monday 20th April 2020: WTI drops like a stone, dragging CAD with it
Events and Calendar
A shortened week with Monday being a holiday in many jurisdictions.
OPEC+ finally reached a production cut agreement, although insufficient to balance the market.
WTI dropped by 7% on Thursday as the OPEC+ bunfight failed to reach agreement. Eventually an agreement was obtained on Sunday. The cut remains insufficient to balance the market.
Risk sentiment was moderately risk-off or indecisive.
US equity indices got stuck at the 50 Fib retracement. Other equity indices got stuck at their 38 Fib retracement.
WTI moved down towards its 18-year low after the OPEC+ deal was announced.
GOLD tried to add to its 8-year high but profit taking on Friday made it flat on the week, just below the high.
Forex was difficult to trade on the Daily chart due to choppiness or simple lack of volatility. Over the week, the JPY did rise and two of the three commodity currencies fell (NZD and CAD) as expected. However, the AUD rose slightly. The USD, EUR and GBP hardly moved.
WTI gaps down at the Sunday open and is falling like a stone.
Equities are holding their recent gains, having retraced between 40% and 50% of their February and March fall. Their next move will be sentiment driven.
GOLD just sits at its 8-year high and major resistance, thinking what to do.
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