Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Wednesday's FX Outlook

Published 10/08/2014, 03:53 AM
Updated 07/09/2023, 06:31 AM

Asia Roundup

UP NEXT: 

Data Watch

CAD: Housing Perm its unexpectedly plunged by 27.3% in August so will be interested to see if Housing Starts also mirrors this. Wityh USD/CAD lookig heavy belw resistance then any strength from US housing may provide short swing trades leading up to the FOMC minutes.  

USD: FED minutes tonight will no doubt hog the headlines tomorrow. To get up to speed you can read the summary of the previous statement we wrote last month. Along with the usual clues traders will be seeking, it will also be interesting to see how string the arguments were from each voting memeber in regards to rate timings. There does still seem to be contrasting views within the FED with Traders buying the Greenback on any hint of hawkishness. With the USD hovering near 4-year highs and with so much anticipation of interest rates to be raised then this does leave room for dissapointment and an eventual deep correction for the USD. 

TECHNICAL ANALYSIS: 

CAC 40: Targeting August lows

CAC 40

To follow on from yesterday's idea, we can see FRA 40 didn't hang around before plummeting to new lows. I would prefer to see a mild bounce into resistance before taking a further short position. However also be on the guard for a deeper retracement as you can see that historically the retracements can be quite deep before the follow-through occurs. 


USD/CADSwing trade below 1.12

USD/CAD

With FOMC minutes and CAD data then we should at least see a directional move on USDCAD tonight. Price is below 1.12 handle and the Weekly Pivot so bearish setups could be considered here prior to the events.

Due to being against the trend I would prefer to have smaller targets, with 1.109 providing a likely bed of support. 

​A Dovish FOMC statement may be required to break it below this zone which could then target the bullish trendline.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.