I went further to research the fundamental events regarding this instrument. One of the recent articles said that Goldman Sachs and Bank of America (the two of the biggest investment banks/companies in USA) predict at least three more interest rates hikes this year. Now in theory, when that happens, the value of currency should go up. I was thinking to make use of this information and trade the pair in long direction. Important note to myself:
- Tomorrow Canada will present their CPI data
- On Wednesday, G20 meetings start
- On Thursday, USA will announce their GDP
When conducting the fundamental analysis, I have to take these three massive events into account.
Moving on to technical analysis, the pair has been on the rise. However, after the small fall, it has found the support line. Next few hours are crucial regarding the movement of the chart. If we will follow the movement in history, the price should fall further. However, I must not let my emotions take over. I must follow the events, analysis, and trends. I decided to trade it in next fashion: short term short, long term long. I verified and checked my prediction on Investing and turns out my analysis was correct (at least according to the moving averages on hourly and daily chart). Hourly chart MA’s showed strong sell, while daily MA’s showed strong buy. If the price will bounce back from mentioned support level at 1,34570, the price could go up to the first resistance at 1,3500. [1]
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* Past performance is no guarantee of future results
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
Link to 5 year chart: https://www.investing.com/currencies/usd-cad