How Can OPEC's Decision Affect the Forex Market?

How Can OPEC's Decision Affect the Forex Market?

2023-04-04 • Updated

Well, well, well, looks like the OPEC Conference had an Extraordinary 183rd Meeting on the 31st of March, and made some changes. They gave the International Energy Agency (IEA) the boot and replaced them with Wood Mackenzie and Rystad Energy as their secondary sources for oil supply and demand data. So, what's the big deal? Well, this move could have some serious ripple effects on the financial markets. Investors and traders will be keeping a close eye on how this change impacts oil prices and how it may affect their portfolios. Time will tell if this move will be a wise one or if it'll backfire. Let's see if this adds up - technically speaking.

USDCAD 

USDCADDaily-0404.png

The Daily timeframe of USDCAD presents us with some of the usual confirmations; Fibonacci retracement levels, MA support, drop-base-rally demand zone, and a few extras. The confluence of the two trendlines aligning as a support is a major indication of bullish intention, but when you combine that with the 200-Day MA as a support, you literally get an 80% valid trade sentiment. I'm personally keeping my eyes peeled on this one.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.37100

Invalidation: 1.32800

EURCAD 

EURCADDaily-0404.png

EURCAD is currently trading inside a channel and approaching a key resistance from the weekly supply zone. It is important to note how the 50-Day MA fits perfectly with the trendline support and the drop-base-rally demand zone which I apparently didn't notice I'd forgotten to mark until now (but I'm hoping you can see it nonetheless). On this one, I'm voting once again in support of the bulls, with my primary target set at the weekly supply zone as marked.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.49500

Invalidation: 1.45100

CADJPY 

CADJPYDaily-0404.png

CADJPY is looking bearish from every angle. First, we have the break of the previous marked low, then the Fibonacci retracement level, and supported by the 100-Day MA, which is another major factor to consider. That's not all though. We also have an elusive AMD (Accumulation-Manipulation-Distribution) pattern. 

Analysts’ Expectations: 

Direction: Bearish

Target: 95.600

Invalidation: 101.110

NZDCAD 

NZDCADDaily-0404.png

NZDCAD and CADJPY have a few things in common. The sentiment on both pairs, for example, is bearish; then we also have a hidden AMD pattern and a break below the previous low. Considering that price is trading within a channel and has only recently been rejected from the trendline resistance, I believe it is only logical to expect price to swoop down to the trendline support, 200-Day MA, and rally-base-rally demand zone lying just below.

Analysts’ Expectations: 

Direction: Bearish

Target: 0.82645

Invalidation: 0.85628

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

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