Bank of Canada expected to keep rates as is....
The BOC is expected to keep rates steady at 0.5%. Adam has a great preview. You can find it HERE.
Technically, the price action has been "wonky" for this pair. In those markets, traders get used to leaning against extremes until that time, the price breaks. The extremes currently come in at the 1.3109-16 area below and the 1.3326-51 area above. The last few days has seen traders confine the extremes by using a downward and upward sloping trend line (at 1.3177 below and 1.3297 above). In between sits the 200 and 100 hour MA (at 1.3334 and 1.3341 respectively - green and blue lines), and 50% retracement 1.3233. The price is currently trading below that area giving the trading a little negative bias going into the decision.
Traders - off the decision, may look to catch a wave toward the extremes given the headlines. A move below the 1.3177 upward sloping trend line would be more bearish, but understand the action of late has not been all that conducive to continuation of trends. So there could be a snap back rally at any time. I would expect that traders should line up against the 1.3115 area but much depends on the tone of the statement/headlines.
ON the topside (on a more dovish statement), with the price below the 200 and 100 hour MA (green and blue line), a move above those levels (and the 50%) will be eyed for increased momentum (needs to get and stay above those three levels between 1.3233-41)). The 1.3300 area with topside trend line and the highs from Monday/Tuesday are a key target (as is the 1.3326 area).
The pairs wonky price action, shows traders reluctance to the next move. Volatile oil, the election, the good and bad in the data (better employment and trade of late despite headwinds from oil sector) take the price one way on one day and the other way the next. Until that pattern is broken, traders will lean against extremes.
