Forex Analysis Report 10-24-18 USD/CAD On The Rise???

rollandthomas (74)in #forex • 6 years ago

The Bank of Canada is expected to raise rates by 25 basis point to 1.75% on Weds, October 24th. Some say the Bank of Canada to raise rates three more times in 2019 based on the strength of the Canadian economy, a successful trade deal with the US and inflation that remains above 2%.

But Canada's inflation decelerated to 2.2% y/y in September compared with expectations of a 2.7% increase and core inflation decelerated to 1.5% y/y in September compared with expectations of a 1.8% y/y increase. However, it doesn’t matter because Canada needs to keep up with the US…or so it appears. Equally important, since the FX market has already baked in a rate hike, failure to do so may result in the USD/CAD selling off.

Lets go to the charts to see how the Smart Money may play the announcement.

Monthly Chart (Curve Time Frame) - monthly supply is 1.37000 and the monthly demand is 1.22000.

Weekly Chart (Trend Time Frame) – the trend is up which has been confirmed by price making lower higher lows and higher highs lows.

NOTE:I’m in love with the weekly supply at 1.35000.

Daily Chart (Entry Time Frame) – the chart suggests to play the extremes, wait for price to get to the daily or weekly demand before considering a trade set-up.