BoC and Governor Poloz rate announcement in focus-25.10.2017Hey guys,
I'm long the USD. I don't think governor Poloz will hike rates anytime time year. Maybe next year if things get hot. Economic indicators are weak. Earlier, Retail sales and CPI under performed and disappointed investors. Furthermore, BoC was said to have angered PM Trudeau when they hiked rate in two quick succession claiming they were offsetting 2015 rate cuts. Many observers said they it was the herding effect after Feds set their rate hike range in Q4 2016.
For now, we go long because of technical considerations. We can see that upper BB price action banding after a break above resistance trend line. If price action continues to chart higher and stay above 1.27 over an extended period of time, then we enter long and aim for 300 pips minimum.
I recommend trading as follows:
Buy Stop: 1.2730
Stop Loss: below 1.2630
Take Profit: above 1.30
Have a good day.
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