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!

2 thoughts on “USDCAD Bearish Set up”

  1. Rana Haq says:

    Thank you for analysis. I plan to read over weekend for next week Wednesday BOC rate decision. And also, identify important levels
    of supports and resistance on USDCAD and CADJPY.

    1. Hadyn S. says:

      Thank you for your feed back Rana. However, hopefully your sure to see where my original trade plan crashed & burned due to less than desirable CPI release & negative Retail numbers. On the flip side of that, if they do raise it, it would be a major market shock as the market has priced in very low odds of a hike happening. Again, thanks for your comment.

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