Thanks to the dovish BOC rhetoric in their latest monetary policy statement, USD/CAD made another upside break from a consolidation pattern. As you can see on the 4-hour chart below, the pair took a breather from its rallies by crawling inside a rising wedge while traders awaited the BOC rate decision.
Although the Canadian central bank decided to keep rates unchanged at 1.00% for now, Poloz didn’t refrain from hinting that they are ready to ease if needed. After all, their inflation outlook remains weak and economic data has been surprising to the downside.
I know I’m a bit late to the anti-Loonie party, as I just decided to hop in at market (1.1100) when I saw the upside break from the wedge. With that, I only risked half my usual position size for now and I plan to add if the pair pulls back a bit. Right now, my initial stop is set below the latest bounce around 1.0940. Don’t forget to check out our risk disclosure if you’re planning to join me on this!
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