EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
Will EUR/CAD follow EUR/AUD?
Information is not investment advice
The Bank of Canada will announce its interest rate decision at 17:00 MT time. According to the forecast, the regulator will lower the key interest rate from 1.75% to 1.25%.
On Tuesday, the Reserve Bank of Australia cut its key rate from 0.75% to 0.5%. The AUD, however, strengthened versus the EUR. If you look at the chart of EUR/AUD, you will see that the pair went down on the day of the meeting and the following day.
Just like EUR/AUD, EUR/CAD has soared during the period since February 20. There’s a chance that the pair will follow the path of EUR/AUD after the BOC meeting. Technically, EUR/CAD met resistance at 1.4945 (100-week MA). The return below the 2018 resistance line in the 1.4880 area will be a bearish sign. On the H4, there’s bearish divergence. The decline below 1.4860 will open the way down to 1.4830 (200-day MA) and 1.4770 (November high).
Trade idea for EUR/CAD
SELL 1.4860; TP1 1.4830; TP2 1.4770; SL 1.4875
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
US final GDP for 2Q -31.4%% vs -31.7% estimate
ADP, US GDP, Chicago PMI and Canadian GDP – all numbers exceeded expectations. Which currency will outperform? Let’s try to find out.
EUR/CAD may get down to the bottom of the September sideways channel if bears keep pressing.