The USDCAD has been trading in a range prior to today’s Bank of Canada rate decision, which is scheduled for later today at 14:00 GMT. Expectations are set to hold rates at .5%, however any adjustment from this benchmark may cause the pair to breakout from the pivot range depicted below. Currently the pair is trading near range resistance, which is found at a price of 1.3009 represented by the R3 Camarilla pivot. If prices remain range bound traders will look for the USDCAD to move towards values of support, including the S3 range support pivot found at a price of 1.2947. In this scenario, traders can continue to look for range based opportunities until market conditions change.
If today’s event risk causes the USDCAD to breakout, traders will focus on either the R4 or S4 pivot, in order to establish the creation of a new high or low respectively. The R4 pivot charted below, is found at a price of 1.3040. In the event prices trade above this value, traders may look to follow momentum towards higher highs. Using a 1x extension of today’s 62 pip trading range, initial targets for a bullish breakout can be set near 1.3071. Alternatively, in a bullish scenerio for the CAD, traders may begin looking for a breakout below the S4 pivot at a price of 1.2916. A move below this value would be significant as it would represent the first bearish breakout this week, as the pair attempts to move towards a lower low.
If today’s event risk causes the USDCAD to breakout, traders will focus on either the R4 or S4 pivot, in order to establish the creation of a new high or low respectively. The R4 pivot charted below, is found at a price of 1.3040. In the event prices trade above this value, traders may look to follow momentum towards higher highs. Using a 1x extension of today’s 62 pip trading range, initial targets for a bullish breakout can be set near 1.3071. Alternatively, in a bullish scenerio for the CAD, traders may begin looking for a breakout below the S4 pivot at a price of 1.2916. A move below this value would be significant as it would represent the first bearish breakout this week, as the pair attempts to move towards a lower low.
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