Raising Interest Rate (2010-07-17 USDCAD analysis)

Bank of Canada would be announcing its interest rate on Wednesday. Market prediction would be 0.75% (which means an addition of 0.25%). If so, USDCAD would be falling later. Technical side also supports this view.



We can see the 4H-chart for USDCAD. The price, as well as MACD, is heading upwards. As no major resistance was hit, I expect the momentum would continue on Monday and Tuesday. However, there is a big resistance --- the interception of the long term trend line and previous highs. They are both strong resistances which could easily stop the surging of USDCAD. Combining with the economic data, we can find opportunity to short sell at 1.0675 cause CAD will strengthen.

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