Fundas - With the BOC and NAFTA talks this week, we can expect volatility. Talk of a future raise and potential positive outcome from the trade talks with US could see CAD regain strength after a few days of selling pressure . While most traders are expecting a pretty dull announcement on Wednesday. Eyes will be on the central banks outlook for potential impacts from NAFTA negotiation results. These will likely shift dictate the BOCs decision whether to raise again in 2018 or early 2019 and as such fuel speculative moves on the CAD.
Techs - That said a major level to watch is the 1.3100 supply area. A retest and rejection may show us CAD bulls are ready to bank on the solid CAD economic numbers along with a much better trade outcome. My sell trade would be after any positive NAFTA news of course, along with the price action. IF i start in short, I think we could see this back at the 1.29 area in the short term.
This is a reactive trade only, the last thing Id want to do is anticipate a reaction to news. As always keep your risk management in check and trust the process.
Happy Trading!
Techs - That said a major level to watch is the 1.3100 supply area. A retest and rejection may show us CAD bulls are ready to bank on the solid CAD economic numbers along with a much better trade outcome. My sell trade would be after any positive NAFTA news of course, along with the price action. IF i start in short, I think we could see this back at the 1.29 area in the short term.
This is a reactive trade only, the last thing Id want to do is anticipate a reaction to news. As always keep your risk management in check and trust the process.
Happy Trading!