Today we once again take a look at the wonderful world of Trump’s Tweets and how they move the market. Unique to FX News, our Trump’s Tweetbomb posts are giving Exness traders that extra angle to get ahead of the curve and target profits from the predictability of Trump’s social media leaks.
This tweet may well have impacted 2 currencies, the US dollar (USD) and the Brazilian Real (BRL). Hence, the chart being focused on at is the USDBRL.
Jair Bolsonaro has a strong stance to fight crime and corruption along with a pro-gun stance – with many people in the media dubbing him the “Tropical Trump”.
His pro-gun stance along with his campaigns to fight crime and corruption would put the US in the perfect position to help Brazil. This was reflected in the markets as seen in how the USD strengthened tremendously against the BRL, moments after Trump tweeted.
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 breakout using basic horizontal resistance.
In the picture above, we can see how a trader can buy on the breakout above horizontal resistance, which coincides with the price breaking out of the Ichimoku cloud. From there, traders will likely hold position at least 5 bars and then close below the Ichimoku Cloud—a strong sign of an exhaustion or fading momentum.
Utilizing such a strategy, especially when coinciding with key announcements from Donald Trump, can lead to really handsome gains as seen in the 600 pips profit a trader would have bagged on USDBRL.