USD/CAD D1
The pair is in a strong downward trend, and the price has flown a key level of support, now resisting. Backed by Canada's strong economic data and oil price growth, CAD has enjoyed good returns over the past few weeks. The price is in the middle of the downward channel and breaks through an important level of support by keeping it underneath the day - a negative signal. 50 and 200SMA are sword placement, but the price is far from them. Sequential has begun counting down, currently counting 3 out of 13 possible - a signal for a new downward impulse. Entry from the current levels should be done with a short stop in the area around 1.2520/50. Later today, Bank Of Canada will announce its decision on the basic interest rate. The bank is expected to raise interest rates by 25 basis points to 1.25%. This is in favor of the short USD/CAD idea, but much of this interest rate is accrued in the Canadian cost. For this reason, we expect caution before the news and increased volatility after the announcement of the decision.
Alternative Scenario: If the price moves back over the pierced horizon and stays there, the negative scenario will be spoiled, and the likelihood of USD appreciation rises dramatically.
Jr Trader Petar Milanov
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