Timeframe: Daily
Confluences: Broke up through a bearish descending TL, and is now retesting that TL in a bullish fib zone and a retest of the previous broken high. A couple of big bearish days made up this C leg, but now it is showing deceleration in this possible reversal zone to go back up. It is also finding possible support in the 21/50 EMAs. 4h chart is also finding support at the 200 EMA.
News: BoC rate decision occurs tomorrow morning. They are expected to increase the interest rate, which should prove bullish for the CAD and be in favor of this trade. However, if they raise it but make dovish remarks about monetary policy, the reaction could actually be bearish, or less bullish. If they don't raise interest rates, I expect this to go very bearish and most likely hit SL.
Confluences: Broke up through a bearish descending TL, and is now retesting that TL in a bullish fib zone and a retest of the previous broken high. A couple of big bearish days made up this C leg, but now it is showing deceleration in this possible reversal zone to go back up. It is also finding possible support in the 21/50 EMAs. 4h chart is also finding support at the 200 EMA.
News: BoC rate decision occurs tomorrow morning. They are expected to increase the interest rate, which should prove bullish for the CAD and be in favor of this trade. However, if they raise it but make dovish remarks about monetary policy, the reaction could actually be bearish, or less bullish. If they don't raise interest rates, I expect this to go very bearish and most likely hit SL.