This week’s forex schedule hints at exciting times ahead for the dollar pairs, as the FOMC minutes are up for release on Wednesday. The Loonie might be in for more movement as well since Canada is set to print its January retail sales figures by Friday. Here’s what I’m looking at:
USD/CAD is currently consolidating inside a descending triangle pattern on its 1-hour forex chart, and I’m thinking that the top-tier events this week could either lead to a bounce or a break. The path of least resistance might be to the upside, as the FOMC statement seemed more hawkish than usual while Canada has been printing disappointing data recently.
I haven’t set any actual entry orders yet, but I’m planning on going long around the 1.2400-1.2450 area if the FOMC minutes turn out dollar-positive. Stochastic is almost in the oversold region anyway and I could aim for the triangle resistance at 1.2600 if a bounce happens. Otherwise, I’m also open to shorting if price makes a strong break below the 1.2400 triangle support. In this case, I’ll go for a 400-pip target, which is the same height as the forex chart pattern. Which way do you think this pair might go?
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