The Bank of Canada will announce her interest rate decision at 9:45 AM ET (CLICK HERE). The tilt is for a 25 basis point cut to 4.5% from 4.75%. However, a survey 30 economists and Reuters puts the average rate at 4.57%. So there is some dissension. The press conference will begin at 10:30 AM ET.
Technically, the price high today moved into the upper swing area that I have been targeting in previous videos and posts. That area comes between 1.3784 and 1.3803.
Since April, the price has been trading mostly between 1.35899 on the downside, and 1.3803 on the top side. There was a break higher in April up to 1.38448, but that wasn’t relatively short-lived.
Through the rate decision, getting above 1.3803 would have traders targeting the high for the year at 1.38448. Move above that level, opens the door for further upside momentum.
On the downside, a break up 1.3734 – 1.3742, would likely disappoint the buyers and tilt the bias back to the downside with the cluster of moving averages including the 200-bar moving average on the 4 hour chart, the 100-bar moving average on the 4- hour chart and the 100 day moving average the next target between 1.3694 and 1.36545.
This article was written by Greg Michalowski at www.forexlive.com.
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