BoC rate decision is the main focus today. For the past 2 weeks, USD/CAD has been traded in a tight range and while no changes are expected from the central bank, Governor Poloz's speech will be watched closely.
He could continue to talk about the possibility of an “insurance cut” in coming months, as uncertainty of trade war persists. If Poloz focuses on the downside risks for the economy, USD/CAD could break upward easily but if he emphasizes the appropriateness of current policy, USD/CAD should fall deeply.
Also note that in the middle of Nov. the H4 50-day SMA crosses above the 200 SMA. This crossover, known as a ‘golden cross’, is a bullish sign for the pair. On the upside, 1.3327 (high of the current range) is the next resistance line. A clear break above 1.3327 will resume the rise from 1.3042 to 1.3346/82 (October and September's highs) resistance zone. Firm break there will suggest completion of medium-term consolidation from 1.3664.
On the downside, a break of 1.3190 will indicate completion of the rebound and turn bias back to the downside for retesting 1.3042 support.
He could continue to talk about the possibility of an “insurance cut” in coming months, as uncertainty of trade war persists. If Poloz focuses on the downside risks for the economy, USD/CAD could break upward easily but if he emphasizes the appropriateness of current policy, USD/CAD should fall deeply.
Also note that in the middle of Nov. the H4 50-day SMA crosses above the 200 SMA. This crossover, known as a ‘golden cross’, is a bullish sign for the pair. On the upside, 1.3327 (high of the current range) is the next resistance line. A clear break above 1.3327 will resume the rise from 1.3042 to 1.3346/82 (October and September's highs) resistance zone. Firm break there will suggest completion of medium-term consolidation from 1.3664.
On the downside, a break of 1.3190 will indicate completion of the rebound and turn bias back to the downside for retesting 1.3042 support.
Order cancelled:
Bearish scenario was fulfill and the price reached 1.3180
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