VantageFX

Expecting a dovish BoC? USD/CAD possibly setting up for a pop.

Long
FX_IDC:USDCAD   U.S. Dollar / Canadian Dollar
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2
Trading the Canadian Election?

After printing 9 days without a single bearish candle and going on the pair’s longest bullish streak in 4 years, it all seems to have come undone for USD/CAD . Last week, price on the Loonie pulled back to re-test previous resistance now as possible support. It’s a very clean level and if momentum stalls, could offer a chance to fade against it.

With the Bank of Canada’s interest rate decision on the calendar tonight, the support that fiscal spending will bring could see Poloz sit on his hands and see if the government can do some of the stimulatory work for him. The question becomes how much weight would a tap on the shoulder from Trudeau asking the BoC to keep a dovish course hold? Governments crave early momentum and even if the bank is unmoved on rates, a dovish tone tonight could give the spur needed.

Do you see opportunity trading the Canadian Dollar?

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