Trump’s twitterbombs: post election

On this week’s roundup of Donald Trump’s tweets, we look at 1 particularly significant tweet post US mid-term election. As we all know the Democrats managed to take control of the US House of Representatives, which is a setback for Trump’s administration. However, despite the setback, Trump still claims the mid-election “close to a complete victory”, which is rather ironic. Here are 2 of the tweets that could present great profit opportunities for the traders this week.

TRADE ON TRUMP TWEET WITH EXNESS

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The USDCAD was on a downtrend earlier due to the Democrats winning the US House of Representatives. This resulted in a split Congress, which usually hurts the USD, as it may make it harder for the passing of Trump’s policies.

The reversal effect after Trump’s tweet on USDCAD.

Trump sees things differently and tweeted out that the mid-term election was a “tremendous success tonight.” USDCAD did a tremendous bullish reversal right after Trump’s positive evaluation of the mid-term election results. Traders can position themselves and take advantage of such opportunities by preparing to go bullish on USD whenever Trump tweets any positive US news. It is not uncommon that Trump sees things differently from everyone, and thus traders should stay vigilant and keep a lookout for such ironic tweetbombs.

How this can be done from a technical analysis point of view is to apply a variation to a method we used previously. A trader can prepare to buy USDCAD when price makes a pullback to previous resistance-turned-support, and also when the price has crossed above the Ichimoku cloud. To decide when to close off his position, a trader can wait for at least 5 bars to consecutively close below the Ichimoku cloud before closing off his position.

Those traders using such a strategy would have bagged a good 17 pips profit. If you’d like to try trading Trump’s tweets, sign up with Exness, select a USD pair from the market watch list, then drag the Ichimoku cloud over to the chart and get ready for the crossover.

OPEN AN EXNESS ACCOUNT A BE READY FOR THE NEXT TWEET

Trading CFDs can be risky

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.