Canadian rate decision: Wednesday, 14:00. The Bank of Canada has shifted its policy towards a neutral one after maintaining a hawkish bias for a long time. The BOC does not intend to raise rates – at least for now. The Ottawa based institution is projected to leave the rate unchanged at 1.75%. Governor Stephen Poloz and his colleagues have a dilemma. On the one hand, the economy is doing well with rising employment, wages, and inflation. On the other hand, the Federal Reserve is about to cut interest rates. The move by Canada’s southern neighbor probably prevents the BOC from hinting a rate hike.
FOMC Meeting Minutes: Wednesday, 18:00. Just after Powell finishes his first session on Capitol Hill, the Fed releases its meeting minutes from the June decision. Back then, the central bank officially opened the door to slashing rates. While Powell’s testimony is more up to date, it is essential to remember that the meeting minutes document is revised until the very last minute. The central bank is aware of the market impact. The same themes are of interest: inflation, growth, employment, trade, and interest rates.
CAD
Canadian rate decision
USD
FOMC Meeting Minutes
- EURUSD
The daily timeframe shows that the pair is traded above a strong support level that is 1.12 – 1.1118 which is where we can look for some bullish evidence. So, we will be waiting for the pair to show up some bullish evidence, then we can go long targeting the level of 1.13 followed by 1.14.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.1500 ▪ 1.1450 ▪ — |
▪ – ▪ – ▪ 1.1118 |
We are bullish as long as the pair is traded above the level of 1.1118. |
- GBPUSD
The daily chart shows that the pair has reached a strong support area located between (1.2490 – 1.2520). In case the pair show up some bullish evidence between these two levels, then we can go long targeting the level of 1.27.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.36 ▪ 1.3310 ▪ 1.33 |
▪ – ▪ 1.25 ▪ 1.2450 |
We are bullish as long as the pair is traded above the support level of 1.25. |
- GOLD
The chart above shows that the pair is about to reach a strong resistance level that is 1435. We will be waiting for the pair to reach this level then in case it shows up some bearish evidence, we can go short targeting the level of 1400 followed by 1350.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1440 ▪ 1435 |
▪ 1365 ▪ 1260 ▪ 1265 |
Waiting for the pair to reach the support level of 1435. |
- AUDUSD
As could be seen on the chart above that the pair is about to reach a strong support level that is 0.6840. In case the pair shows up some bullish evidence above this level, we can go long targeting the level of 0.71.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7550 ▪ 0.7600 ▪ 0.7000 |
▪ 0.6778 ▪ 0.68 ▪ – |
Waiting for the pair to confirm its coming move. |
- GBPJPY
As could be seen on the chart above that the pair is traded above a strong support level that is 133.50. We will be waiting for some bullish evidence to show up then we can go long targeting the level of 138 followed by 139 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 156 ▪ 155 ▪ 141 |
▪ 134 ▪ 133 ▪ 132 |
Waiting for some bullish evidence to show up. |
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