We have outlooked several promising Forex pairs and the result can surprise you!
AUD/CAD has trouble rising
Information is not investment advice
AUD/CAD met resistance at the line connecting December and March highs. It failed to close above 10-day MA (0.9515) on Friday and is now testing 200-day MA (0.9497). We see that the path of the least resistance for the pair is to the downside. The decline below 0.9480 will confirm the short-term top and open the way down to 0.9455 (200-period MA on H4) and last week’s lows at 0.9415. To regain strength the Australia dollar needs to get above March 26 high at 0.9526. In this case, the next upside target will be at 0.9623.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.