27 Feb 2015
USD/CAD dip towards 1.2320 possible if BoC keeps rates steady – GrowthAces
FXStreet (Barcelona) - The GrowthAces Research Team shares the trade setup for USD/CAD into the BoC meeting next week, expecting the Canadian central bank to hold rates steady.
Key Quotes
“Investors are pricing in a less than 30% probability that the Bank Of Canada will lower rates again when it meets next week. The market is converging to our forecast that the Bank Of Canada will keep interest rates unchanged.”
“Despite higher-than-expected CPI and lowering expectations for a rate cut in Canada the CAD depreciated yesterday against the USD…”
“Our trading strategy is to sell the USD/CAD again. We placed the order at 1.2530. If it is filled the target will be 1.2320, just above the strong support of 1.2310 (daily low on January 22). In our opinion the target may be reached next week if the BoC does not change rates.”
“Resistance: 1.2535 (high Feb 25), 1.2600 (psychological level), 1.2662 (high Feb 24)”
“Support: 1.2388 (low Feb 26), 1.2360 (low Feb 17), 1.2353 (low Feb 3)”
“USD/CAD trading strategy: sell at 1.2530, if filled - target 1.2320, stop-loss 1.2630, risk factor **”
Key Quotes
“Investors are pricing in a less than 30% probability that the Bank Of Canada will lower rates again when it meets next week. The market is converging to our forecast that the Bank Of Canada will keep interest rates unchanged.”
“Despite higher-than-expected CPI and lowering expectations for a rate cut in Canada the CAD depreciated yesterday against the USD…”
“Our trading strategy is to sell the USD/CAD again. We placed the order at 1.2530. If it is filled the target will be 1.2320, just above the strong support of 1.2310 (daily low on January 22). In our opinion the target may be reached next week if the BoC does not change rates.”
“Resistance: 1.2535 (high Feb 25), 1.2600 (psychological level), 1.2662 (high Feb 24)”
“Support: 1.2388 (low Feb 26), 1.2360 (low Feb 17), 1.2353 (low Feb 3)”
“USD/CAD trading strategy: sell at 1.2530, if filled - target 1.2320, stop-loss 1.2630, risk factor **”