We have outlooked several promising Forex pairs and the result can surprise you!
CAD/CHF has slumped
Information is not investment advice
The CAD has fallen versus the most major currencies after the Bank of Canada said that it considered an insurance rate cut. Have a look at the chart of CAD/CHF: the pair is testing daily moving averages. A close below 0.7490 on Friday will result in a bearish “engulfing” candlestick and open the way down to the 2018-2019 support line in the 0.7315/00 area. The decline below 0.7470 may trigger the slide to 0.7450 and 0.7430. Below 0.7400, another swing down towards 0.7300 will start. On the upside, a return above 0.75 (200-day MA) is needed to open the way up to 0.7570 and higher.
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.