I’ve received my eye on this USD/CAD triangle sample forward of right now’s BOC resolution.

Is it gonna be a bounce or breakdown for this one?

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out a variety help check on EUR/NZD on upbeat eurozone knowledge. Remember to try if it’s nonetheless a legitimate play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Contemporary Market Headlines & Financial Information:

China, Hong Kong, and Singapore markets nonetheless out on financial institution holidays

U.S. Dec flash manufacturing PMI up from 46.2 to 46.8 vs. 46.0 forecast

U.S. Dec flash providers PMI up from 44.7 to 46.6 vs. 45.3 estimate

API reviews bigger than anticipated non-public oil stock construct

North Korean capital of Pyongyang enters 5-day lockdown

New Zealand CPI down from 2.2% to 1.4% q/q in Q1 vs. 1.3% consensus

Australia’s CPI rose from 1.8% to 1.9% q/q in Q1 vs. 1.6% estimate

Australian trimmed imply CPI dipped from 1.9% to 1.7% q/q in Q1 vs. 1.5% forecast

New Zealand bank card spending slowed from 16.2% to 12.4% y/y in Dec

U.Okay. PPI enter costs slipped by 1.1% m/m in Dec vs. projected 0.8% decline

U.Okay. PPI output costs down by 0.8% m/m in Dec. vs. estimated 0.1% uptick

BOC financial coverage assertion at 3:00 pm GMT
EIA crude oil inventories at 3:30 pm GMT
BOC press convention at 4:00 pm GMT

Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

What to Watch: USD/CAD

USD/CAD 1-hour Foreign exchange Chart by TradingView

Which method will the BOC resolution take the Loonie right now?

USD/CAD is hanging out on the very backside of its symmetrical triangle sample, nonetheless deciding whether or not to make its method again to the highest or go for a break decrease.

Technical indicators are giving blended indicators, with shifting averages pointing to a bearish transfer and Stochastic hinting at a possible rally.

I’m additionally seeing a little bit of a bullish divergence, because the oscillator made greater lows whereas the pair is forming decrease lows.

A bounce might take USD/CAD to the triangle resistance on the 1.3600 main psychological mark whereas a breakdown might set off a drop that’s the identical peak because the chart sample.

After all it might all boil all the way down to the BOC announcement, because the central financial institution is extensively anticipated to ship one other 0.25% rate of interest hike.

Contemporary financial forecasts are additionally on the docket, and these would doubtless present higher clues on what policymakers are planning for the subsequent few months.

Some predict that the BOC might both downgrade inflation forecasts and even determine to pause with their tightening this time, because the nation can be coping with a shaky housing market.

In any case, be careful for added USD/CAD volatility in the course of the announcement and press convention!