Good morning Traders!
Today we have the Bank of Canada interest rates decision, and the market is expecting a
slower rate of increase, and a smaller interest rates hike of 0.25% which will take the
official rate to 4.5%
EUR/CAD
If the rate decision and the follow up press conference will be viewed by the market as
bearish for the Canadian Dollar, I’ll be looking at the EURCAD chart and the level, which
so far, have been proven strong resistance around the area of the 1.4650
The Daily chart is back in an uptrend and on the weekly chart the market has ever so
slightly broken the previous swing High to print a Weekly Higher High. The Monthly chart
is still in a downtrend, however if the market will break above this level, it will also void the
downtrend on the Monthly chart, giving further weight to the importance of this level.
USD/CAD
However, if the rate decision and the follow up press conference will be viewed by the
market as bullish for the Canadian Dollar, I’ll be looking at the USDCAD chart and the
level of support around the area of the 1.3220
While the price action here is not as smooth as in the chart of EURCAD, the big picture on
the Daily chart is a downtrend, and the Weekly chart has broken the uptrend by printing a
Lower High. A break lower below this level, would also confirm a downtrend on the
Weekly chart.
Happy Trading!
