The USDCAD pair couldn’t rise above 1.3120-1.3130 levels for the last 3 session. It looks like bulls is on the pause after fast growing from the low of 16th of October at 1.2914. At the same time, the Cayman indicator still shows that the USDCAD pair is in oversold zone. There is only 24% of buyers.
However, we have to take into account today’s Bank of Canada releases regarding Interest rate decision and Rate statement at 14:00 GMT. We expect, that BoC keeps rate at the same level and the pair will grow to 1.3170 resistance level. So, our idea for today is buying the US dollar against Canadian dollar with Take Profit at 1.3170.
Today we also expect many fundamental releases in EU countries and USA. That is why technical picture might go by the wayside. The US dollar shows its power against almost all the majors on the last week, because of high rates in the US and hawkish FED minutes. While a stabilizing of a stock US market is helping the US currency, monetary policy announcements will remain in focus today.
That is why, we recommend to increase long position in EURO, if the EURUSD pair falls to 1.1430 support level.
Our targets for,
USDCAD – is buying to 1.3170 level
EURUSD – is buying from 1.1430 level