2023-06-07 • Updated
Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer. The Bank of Canada's rate hike spree hit a "conditional pause" in March after eight consecutive increases, bringing the policy rate to 4.5% from the pandemic-era lows of 0.25%. The central bank has been closely monitoring data, waiting for signs of a cooling economy that would help bring inflation back down to its target of two percent, projected to be achieved by 2024. The decision awaits, and it's bound to impact forex markets. Stay tuned for the verdict, and keep your trading strategies nimble.
Following the rejection from the rally-base-rally demand zone’s confluence with the support trendline, AUDCAD has seen a massive push upwards. There is a high likelihood that the bullish price action continues until the resistance or supply zone area is reached. The supply zone has a few confluences which I expect to yield a good amount of selling pressure. The confluences include;
Analyst’s Expectations:
Direction: Bearish
Target: 0.88610
Invalidation: 0.90435
GBPCAD is currently trading within a rising channel and has reached the support trendline of the channel. The trendline support aligns perfectly with the 100-Day moving average support, and the moving averages are all bullish. A drop-base-rally demand zone also serves as a confluence to the factors above, thus, lending more credence to the bullish sentiment.
Analyst’s Expectations:
Direction: Bullish
Target: 1.69991
Invalidation: 1.65047
NZDCAD looks like it’s prepping for a massive bullish move. This is not a random assumption. The sentiment is based on the current consolidation within the rally-base-rally demand zone and the trendline support of the descending, which fits perfectly within the frame of the demand zone.
Analyst’s Expectations:
Direction: Bullish
Target: 0.83400
Invalidation: 0.80974
In line with the previous analyses, EURCAD also presents a strong bullish case based on the confluence of the drop-base-rally demand zone, the 200-period moving average support, the bullish array of the moving averages, and the trendline support. As a result, my trade sentiment is bullish for the time being.
Analyst’s Expectations:
Direction: Bullish
Target: 1.45048
Invalidation: 1.42142
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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