USDCAD Bearish Set up

In a few hours the Bank of Canada will release its CPI and Retail data. By that time, the US dollar should already be priced in after news of the Senate 2018 budget proposal late Thursday. I’m looking for some decent CPI/Retail numbers that might increase the odds of a BoCanada rate hike next Wednesday. There is a US PMI release Tues, and a US Durable goods release right before the CAD rate decision. However, unless those numbers come in shockingly good, I doubt they’ll trump a possible rate hike.
The pair has already found support, and a double top (4hr) at the 1.2590 area, and has a lower low, & a new resistance, at 1.2415 which is the weekly & monthly M3 cluster. Good luck, and happy pip hunting!

USDCAD-Bearish-Set-up

One thought on “USDCAD Bearish Set up”

  1. Hadyn S. says:

    Wow!! Really bad numbers. I hope any traders who attempted this either waited for the numbers, or kept their stops tight, or better yet jammed. I will be sure to insist on that on any scenarios like this one in the future. An observation I noticed is Yen and USD traders traded also anticipating decent numbers, while GBP traders anticipated the opposite. A double release swing trade like this, can really be profitable when the numbers are in your favor, but as this particular trade plan showed, either get in early enough to jam your stop, or wait for the numbers to release. and trade the retracement if possible, or in this case definitely not!

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