Looking for oil-related trades today?
Check out GBP/CAD’s falling wedge pattern and see if you can make pips from the pattern holding or breaking out!
Before moving on, ICYMI, yesterday’s watchlist looked at NZD/USD’s divergence after Powell’s hawkish speech. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Powell says Fed could raise rates more quickly to tame inflationGoldman sees Fed hiking rates by 50 bps at May, June meetings
RBA Gov Lowe: RBA won’t respond until there is evidence of widespread price pressures
NZ Consumer confidence lowest since 2008 global financial crisis: Westpac survey
UK public borrowing higher at 13.1B GBP vs. 8.1B GBP expected in February
Banks, energy, and mining stocks lead gains, oil jumps as war and rate hikes rattle nerves
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.K. CBI industrial order expectations at 11:00 am GMT
ECB President Lagarde to talk of the future of money in the Eurosystem at 1:15 pm GMT
SNB Chairman Jordan to give a speech at 3:15 pm GMT
BOJ’s core CPI at 5:00 am GMT (Mar 23)
U.K.’s CPI at 7:00 am GMT (Mar 23)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: GBP/CAD
GBP/CAD has been on a downtrend since late February thanks to higher crude oil prices pushing CAD higher and tensions in the euro region lowkey dragging GBP.Can the bears extend their momentum?
The pair is now trading inside a falling wedge pattern. Not only that, but it’s also testing the pattern’s resistance near the 100 and 200 SMAs on the 1-hour time frame!
The prospect of EU members imposing sanctions on Russian oil has raised oil prices. This could boost CAD across the board and drag GBP/CAD from the wedge resistance area.
Meanwhile, the U.K. is about to print its inflation data. If it comes in higher than BOE is expecting, then the central bank could tighten its monetary policies faster and probably choke the economy’s growth.
Watch how GBP/CAD reacts to its current resistance zone. If the pair starts sustainably trading above the wedge and the SMAs, then it could be headed for areas of interest near 1.6800 or 1.6950.
If you start to see red candlesticks, however, then you might want to consider that the falling wedge pattern may hold. GBP/CAD could turn lower from its current levels and retest the wedge support areas.