Risks skewed to the downside for the pound.
On the other side, focus now on BoC policy decision. A 25bps hike is widely expected.
Technical studies for the pair also support weakness. Stochs are sharply lower and RSI is below the 50 mark.
MACD is on verge of a bearish crossover on signal line and we see rise in volatility on the intraday charts.
Break below cloud could see drag till major trendline support at 1.66 levels.
While bounce off cloud and close above 110-EMA (1.7098) could negate bearish bias.
Support levels - 1.6974 (cloud top), 1.6861 (Sept 21 low), 1.66 (trendine)
Resistance levels - 1.7011 (55-EMA), 1.7098 (110-EMA)
Stay short on decisive break below cloud, SL: 1.71, TP: 1.6860/ 1.6760/ 1.67/ 1.66
On the other side, focus now on BoC policy decision. A 25bps hike is widely expected.
Technical studies for the pair also support weakness. Stochs are sharply lower and RSI is below the 50 mark.
MACD is on verge of a bearish crossover on signal line and we see rise in volatility on the intraday charts.
Break below cloud could see drag till major trendline support at 1.66 levels.
While bounce off cloud and close above 110-EMA (1.7098) could negate bearish bias.
Support levels - 1.6974 (cloud top), 1.6861 (Sept 21 low), 1.66 (trendine)
Resistance levels - 1.7011 (55-EMA), 1.7098 (110-EMA)
Stay short on decisive break below cloud, SL: 1.71, TP: 1.6860/ 1.6760/ 1.67/ 1.66
Comment:
Tests 1.67 handle, bias lower.
Comment:
GBP/CAD edges higher from 4-week lows at 1.6646.
Close above 5-DMA could see minor upside.
Close above 5-DMA could see minor upside.