CHART ART: USD/CAD Dropping as Forex Markets Prepare for the Bank of Canada to Hike Interest Rates
GOOD EVENING STEEMIT!
FUCK FOOTBALL. Yes I'm still fuming about last night. We were outplayed in every facet of the game by a far superior team. This account isn't about football so that's the end of it here... but just be happy that you don't know me in person or I'd be chomping your ear off about this fucking back 3 system we continue to persist with. Arghhh!
What I am going to do however, is delve back into the world of forex trading. For some reason, it seems that the Steemit audience has voted with your upvotes and forex CHART ART is your least favourite topic to read! Hmm, a little awks seeing as though my blog and social media handle is literally forex broker haha!
You might not like hitting the upvote button, but the forex trades are still making us money if you're following along. How short EUR/GBP are you right now? BALLS DEEP!
Today's USD/CAD setup has already started to play out and it is really a wait and see, but the fundamental scenario goes perfectly with the technicals so it's worth doing a write up on. The pair is going to give us a trade soon enough, don't you worry about that!
USD/CAD - The Scenario
With the Canadian economy surprising forex markets with a 4.5% GDP beat of the 3.7% expectation, the Canadian economy has been ranked the best performing economy in the G7. That's a pretty big deal!
What it does mean is that a rate hike is now firmly on the table. Interest rate futures markets are pricing in a 37% probability of a rate hike in September and an 86% probability in October.
Check out the daily:
USD/CAD Daily
The higher time frame level here is pretty obvious and I still find it amazing that price just happens to find its way to a major technical level right as fundamental news is about to be released.
But how can we trade it? Let's zoom in another level with the hourly:
USD/CAD Hourly
Well as I said above, the trade I've marked with the arrows has gone. That was the pre-news level where price was just hovering at resistance and then as soon as the news was released, dropped like a stone out of it.
Now we have to just wait for the intraday price action to see if we get a pullback to sell into. The rate hike is coming, but how soon and how much is the market going to price in?
Surely there's new lows in this. Surely...
Famous last words? :P
Peace!
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How do you think the heightened interest rate will affect the crypto market, if at all?
Thanks for posting @forexbrokr!
Interest rate movements in Canada will have zero impact on crypto. Look elsewhere for correlations I'd say :)
You rock!! Caught the 2nd downward move thanks to you! Looks like it breached a support, so it should be set to go lower soon.
BOOM, great trading! :)
Do you ever hang out something like Mumble (it's open source ventrillo/teamspeak; I'm partial to it because I host my own server) or Discord while trading? One of my friends recently announced that he thinks he found his new occupation after I showed him the basics of TA, and we've found we both get far better returns when in a voice-chat room while trading... Perhaps such a venture might be mutually beneficial? I only started dabbling in Forex quite recently - inspired to do so by your chart-art in fact, but I've been involved in cryptocurrency for nearly 5 years now.
I just hang out on Twitter basically.
I'm not really an in and out all the time guy, so the less intense tweeting and blogging works for me. I'm all about identifying higher time frame levels and then just trading around those, so I just want to browse through other people's charts to see if anything jumps out at me rather than hear their opinions ;)
You are my idol.
Oh ashtar, thank you so much! :)
Great. Thanks for sharing. I'm starting to follow you.
I hope you get some value from my stream.
well said, dear, pl visit my blog for something new
Which part was well said?
USD/CAD scenario
Oh good. Here I was thinking you didn't even read the blog and were just spamming me!