During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
BoC Rates Could Alter The Trend on USDCAD and others
2023-01-25 • Updated
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.
USDCAD
USDCAD is currently trading around a Daily drop-base-rally demand zone above the 200-EMA (Exponential Moving Average). The moving averages suggest that we are currently bullish on price action. Moreover, coupled with the trendline support, bullish break of structure (marked by the short arrowed line), and the demand zone region, we can expect a bullish reaction from the marked rectangular area.
GBPCAD
GBPCAD has recently broken structure bullish, as shown by the arrowed line to the left. There is also trendline support overlapping with the 50-SMA right around 61.8% of the Fibonacci retracement level. Thus, the price would deliver a bullish reaction from the marked demand zone.
EURCAD
EURCAD has been trading around a Pivot zone on the Daily timeframe. Considering the bullish lay of the Moving Averages, we may not see the bearish move extend below 1.44640. The interest rates will bring clarity to the direction in the future.
AUDCAD
The daily timeframe of AUDCAD shows the price currently within a supply zone. It seems logical to expect some bearish relief from the last bullish run. My target for the bearish retracement would be 0.93810.
Analysts’ Expectations:
Previous: 4.25%
Forecast: 4.50%
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.
You can access more of such trade ideas and prompt market updates on the telegram channel.
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...