Our free forex signals service trade today is a buy order on the USD/CAD. The pair will go down if the Bank of Canada hikes the interest rates.
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The USD/CAD pair is trading green on the hourly chart at 1.2640. The price tries to resume its upside as the Dollar Index maintains a bullish bias after the US inflation data. As long as the DXY resumes its growth, the USD could appreciate versus its rivals.
Still, the currency pair is in a resistance zone in the short term. The price action signaled a bearish divergence signaling that the buyers were exhausted. The bias is bullish. That’s why we need strong confirmation before taking action.
The US PPI is expected to register a 1.1% growth versus 0.8% expected, while the Core PPI could register a 0.5% growth in March versus 0.2% growth in February.
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Canadian Overnight Rate 1.00% expected
Today, you need to be careful as the Bank of Canada is expected to hike the Overnight Rate from 0.50% to 1.00%. In addition, the BOC Press Conference, BOC Monetary Policy Report, and the BOC Rate Statement could really shake the markets and bring high volatility.
From the technical point of view, the USD/CAD pair could turn to the downside if it stays below the descending pitchfork’s upper median line (UML).
Free forex signals – Sell USD/CAD at 1.2606
Free forex signals entry price and take-profit
Instrument: USD/CAD
Order Type: SELL STOP
Entry price: 1.2606
Stop Loss: 1.2667
TP1: 1.2494
My Risk: 1%
Risk / Reward Ratio: 1:1.8
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