Free Trade Ideas

Welcome to Wednesday’s trade! “Heavy action” is the theme yet again, as the US equities indices spike higher. At press time, the DJIA, SP500, and NASDAQ are up more than 2.75%. The NASDAQ is smoking higher by more than 3.75% on a major trend day up. However, things are much different on the commodities front. Crude oil prices are off 2.75%, and spot gold prices have fallen beneath 3300. Remember that XAU/USD buy Trade Idea from yesterday? It cashed in easily earlier today, a fantastic bid off of Fibonacci support. We’ll recap this trade and more at today’s US Session Live Stream.
So, what is the catalyst behind the action? Breaking news. Shortly after Tuesday’s Wall Street close, stories began hitting the wires that Trump had backed off his stance on firing Fed Chairman Jerome Powell. Here are the key quotes:
On the 145% tariffs on China: “It’s very high, and it won’t be that high. No, it won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.” On Powell: “I have no intention of firing Powell.” These quotes are major walkbacks and show the flexibility of the Trump administration’s policy. Be forewarned: this is only a preview of things to come. One of Trump’s foundational negotiation tactics is to keep everyone guessing as to what is coming next. Expect the seesaw action in the markets to continue until a comprehensive deal can be struck with China and Fed rate cuts commence. The past two months have brought some great trading in the USD/CAD. Here’s another support level worth watching as we roll toward May’s trade:
Monthly 78% Fibonacci Retracement, 1.3714
Be sure to check out our Key Levels for more information on this Trade Idea.
That’s all for now; we’ll see you later today at the Wednesday Workshop: 9/20 EMA Crossover Strategy!