It looks like we’re going to be range bound going into Wednesday September 20 with US FOMC rate decision news event, however, the rate is going to stay the same 1.25% which is not news worthy but the forward guidance I believe is going to be interesting or very convoluted with the recent hurricane events short term disrupting food/energy and general economic growth. Also throw in balance sheet tapering and possible Fed chair vacancy with the potential for Janet Yellen to step down in February. As a result I’m not expecting any real clarity from the FED going forward and believe it will negatively impact the dollar in the short term.
As a result I’m anticipating dollar weakness out of FOMC meeting if correct we could see the USDCAD trading around major psych level of 1.2000 near monthly pivot of MS3 — 1.2016. So for the beginning of the week I foresee range bound continue selling 1.2230 level paying attention to the oscillators around support and resistance and then Wednesday afternoon is the big day and see how low we will go by Friday heading into CAD news – retail sales.