Bank of Canada’s rate decision is coming up and EUR CAD double top formation could complete on the volatility, however there are some barriers for the pair to break below on the forex dance floor.
The last time the Bank of Canada (BOC) made a policy decision was in late May. Back then the central bank’s slight optimism over Canada’s growth, worries over the housing market, and overall neutral tone hinted that the BOC is in no hurry to cut its interest rates.
Since then Britain has voted to move out of the EU, confidence in the global economic recovery has been shaken again. Oil prices have returned to their two-month lows. More importantly, Canada’s economic reports have printed choppy results at best.
The latest employment numbers, for example, showed that full-time hiring has slumped and that the participation rate has fallen for the third month in a row. So with no relief in sight for Canada’s exports and the labor market on shaky ground, will the BOC finally pull the trigger and announce a rate cut?
I’ll leave my Invest Diva’s to make that conclusion 🙂
Economic Calendar
First off today is Australia’s Consumer Inflation Expectation out at 1 AM GMT and their Unemployment rates at 1:30 AM. Later during the London session BoE Interest Rate Decision is announced by the Bank of England to further shake up the British Pound amid all the recent volatility and uncertainty. From the US we have their Initial Jobless Claims released by the US Department of Labor at 12:30 PM GMT. Jobless claims are expected to have risen this week to 265K from last week’s 254K.
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Canada will also release their New Housing Price Index at 12:30 PM and the combination could create trading opportunity in the USD/CAD pair. Later the Federal Reserve Bank of Atlanta, chief executive officer Dennis Lockhar is due to speak at 3:15 PM GMT.
EUR CAD Double Top Formation – Forex Economic Calendar
EUR CAD Double Top Formation – Technical Analysis
Mr. Euro seems to be leading Ms. Loonie to form a double top. However they still have a massive blue Ichimoku cloud to break below before we can confirm the chart patter. Currently the neckline is set at 1.3529. A break below this pivot level could open doors for further drops targeting 1.2850.
EUR CAD Double Top Formation – Technical Analysis
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Kiana 喜愛成
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