Tuesday Trading Tip – Bank of Canada Preview

Bank of Canada Canadian Dollar forex blog Kathy Lien

The Bank of Canada meets tomorrow and based on the following table, they have more reasons to smile this month with consumer spending and job growth improving significantly. Oil prices are also up 10% since March and the slowing down of Fed tightening will remove some of their worries about the outlook for Canada’s economy. So chances are the BoC rate decision will be positive for the Canadian dollar

CAD0416

AUD/CAD Big Trade 03.23.2016 +60

Swing

3/24 – AUD/CAD We closed the trade at .9788 +60 on the trade

3/23

AUD/CAD Big Trade Update – Set Target at 0.9988. There should be resistance at parity, so anywhere between 0.9988 and 0.9995 is a good exit. I’m also not around the actively watch the trade, so this is the recommended tactic for AUD/CAD

3/23 – Order to Buy AUD/CAD at 0.9928 Triggered

New AUD/CAD Big Trade Orders

Place Order to Buy AUD/CAD at 0.9928

Stop at 0.9728

Gold is the biggest beneficiary of the Brussels attack. AUD also up because RBA Gov Stevens did not say anything particularly damaging about the Australian dollar last night. Oil is also nearing a top. Uptrend in AUD/CAD intact

EUR/USD Big Trade + 60

Swing

BK. BIG TRADES close EURUSD Here at 10885 +60 on trade we will reload later

Sell EUR/USD on a BREAK lower at 1.0945 TRIGGERED

BIG TRADE ALERT -Sell EUR/USD on a BREAK lower at 1.0945

If this order triggers, place another order to sell at 1.1165

Stop on the whole position at 1.1270

After a strong counter trend rally its time to get back into EUR/USD shorts. With Greece still unresolved and none really certain as how a Greek bankruptcy would affect the Eurozone the market is much too complacent about the risks in the pair.

Add to that the fact that the Fed clearly wants to hike and is just looking for better data to finally start normalizing monetary policy and the pair could be in for another fall that could send it to a retest of the yearly lows at the 1.0500 level.

However, the market dynamics remain uncertain for now so we only want to sell the EUR/USD when its starts moving in alignment with our thesis, so we will be selling the pair only on the break lower