USDCAD – Looking for pivotal 1.2850 to provide base for correction
Main focus will be on the BoC monetary policy announcement. In line with consensus, markets expect them to leave monetary policy unchanged. More importantly, however, economists expect the central bank to lower 2016 growth projections as the 2.3% full-year growth estimate appears overly optimistic.
Near term bearish tend remains intact as intraday resistance at 1.3050 contains intraday upside reactions bears target a retest of bids below 1.2850. A breach of 1.3050 opens test of 1.31 offers next.
- Looking to position long on intraday retest of bids at 1.2850 pivotal support. Will venture long on intraday reversal patterns at this level, to play for a correction against the recent decline
- Monitoring retail trade sentiment looking for increasing bearish positioning on a retest of 1.2850 bids