Good morning traders,
USD/CAD tumbled to a fresh yearly low for 2017 as the Bank of Canada hiked their benchmark interest rate to 1.00%.
As we’ve been discussing on the blog, this shift in market positioning was expected to continue throughout the remainder of the year as Governor Stephen Poloz continues to take a hawkish stance in any forward guidance published from the bank. This also comes as the normalasation (god I love that word) of monetary policy appears to be on course as we head through the back half of the year and beyond.
Remember on Tuesday when we last blogged the following USD/CAD setup? Price retested support and then…
“I’ve used a 4 hourly chart on this occasion, simply because it clearly shows the swing low levels that we’ve been watching for previous support to possibly turn to resistance.”
“As long as price is below the daily support level, the intraday zone that I’ve marked with the thinner lines is the key level to look for a turn.”
Well done to those of you on the Vantage FX book that got on board!
Best of probabilities to you.
Dane Williams – Vantage FX
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Source: Vantage FX Blog