Forex Marketz Daily Forex News – Fully Markets Update
The USD/CAD pair appears to be forming a very pronounced descending triangle, and as a result it’s very possible that we will break down. If we get below the 1.2350 level, the market could very easily head down to the 1.20 level given enough time. While this market is most certainly in an uptrend, the fact is that it does look like we could pull back and find a bit of value in the US dollar.
The Bank of Canada has an interest rate decision during the session today, so that certainly will move this market. More importantly though, they have an interest rate statement afterwards that can give us an idea as to where the Bank of Canada is going in the future as far as the interest-rate situation is concerned. Because of this, this could be the catalyst to break down the pair. However, I have a hard time believing that the 1.20 level below will get broken. Eventually, the buyers will step back in and push this market higher.
On the other hand, if we break above the top of the downtrend line that forms the descending triangle, we could then head to the 1.30 level. It will be interesting to see how this plays out today, but this is probably the Forex pair that has the most potential to move drastically.