Bank of Canada Hikes Rates and USD/CAD Snaps

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…

Then:

USD/CAD 4 Hourly:

Click on chart to see a larger view.

“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.”

Now:
USD/CAD 4 Hourly:

Click on chart to see a larger view.

SNAP!

Well done to those of you on the Vantage FX book that got on board!

Best of probabilities to you.

Dane Williams – Vantage FX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Source: Vantage FX Blog