The BOC confirmed an easing bias at their recent rates meeting where they noted they had “actively discussed” the prospect of easing but opted to remain in wait and see mode for now. Easing expectations have subsequently increased. Following the meeting last week we then had the release of worse-than-expected CPI data for the North American country, adding further pressure. Reports today that Iraq are looking for exemption from any OPEC Oil deal have seen Oil prices knocked lower and threaten to add further pressure over the week creating downside risk for the Canadian Dollar. The Swiss Franc is likely to benefit through safe-haven inflow, creating scope for further downside in CADCHF.
CADCHF is currently moving lower within a bearish channel having reacted off the channel resistance line last week. Friday’s candle confirmed downside momentum in the pair and I am now looking to sell a break of the lows with a view to a continuation of the channel.
SELL .7440 STOP .7510 TARGET .73
Update: target hit 01/11