Trade Plan for the USD/CAD ๐บ๐ธ ๐จ๐ฆ (WN37)
Detail on the orders placed by Jeepson Trading at eToro and 5ers
FUNDAMENTAL AND SENTIMENT SUMMARY
The Governing Council of the Bank of Canada met last Wednesday on the 7th of September and a decision was made to hike the Overnight Rate (Interest Rate) by 75bps from 2.50 percent to 3.25 percent which was as expected. The policy outlook is hawkish as Trading Economics are forecasting rates to be at 4 percent next year in 2023. The next scheduled meeting for the governing council is in several weeks on Tuesday the 26th of October.
More recently, the unemployment rate was reported last Friday on the 9th of September at 5.4 percent which was above expectations of 5.0 percent and a lot higher than the previous 4.9 percent.
The sentiment that is presently influencing the valuations on the Canadian Dollar is the narrative regarding a global growth slowdown and the pessimistic outlook is expected to lower the demand for oil which is the reason for the price of WTI Crude Oil falling below $100.
The attention of market participant traders is towards the Housing Starts which is out today on Thursday the 15th of September and a lower number is expected.
ORDERS
The momentum on the $USDCAD is expected to remain bullish in light of a strong US Dollar and the pessimistic outlook on global growth. The micro-term chart indicates that price is resisting moves above C$1.319 so a retracement may occur before advancing towards the short-term possible resistance level at C$1.332.
An order to BUY the $USDCAD has been placed based on the short-term uptrend and Risk Level 3:
Stop Loss 1.289
First Buy 1.309
Second Buy 1.309.
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The content provided is intended for informational purposes only. Investments on the forex markets and trading decisions are made at your own risk.