Bullish Reversing Pattern in USD/CAD After the Smaller BOC Hike And GDP
USD/CAD has formed a bullish revering pattern on the daily chart as the BOC slows down with rate hikes despite a positive GDP report
This week we had some important economic data from Canada, such as the interest rate decision from the Bank of Canada and the GDP report for August. USD/CAD had been on a bullish trend during September, but the trendslowedin October and in the last two weeks the price has been retreating lower.
This forex pair peaked above 1.40 for a moment but fell to 1.35, which was the low early this month. That level held as support once against and on Thursday the price formed a doji which is a bullish reversing signal and yesterday we saw a nice bounce, as buyers pushed the price above 1.36.
USD/CAD Daily Chart – The Previous Low at 1.35 Holds
Stochastic is oversold
The USD buyers started coming back during the end of the week, as the European Central Bank hinted at slower rate hikes. Although the smaller rate hike from the BOC at 0.50%, while expectations were for a 0.75% hike was the main reason for the reversal in this pair.
Now, USD/CAD islooking bullish, although traders willbe cautious ahead of the FED meeting this week. The GDP report for August showed a tick higher while September came at 0.1% too, with the advance Q3 GDP at 0.4%. Thee arenot great numbers but at least this was a positive report.
Canadian Monthly GDP Data for August
- August GDP +0.1% vs 0.0% expected
- July GDP MoM was +0.1%
- Services-producing industries +0.3%
- Goods-producing industries -0.3%
- Increases in the oil and gas extraction subsector, the manufacturing sector and the public sector were partially offset by declines in construction
- Advance September GDP +0.1%
- Advance Q3 GDP +0.4% YoY
- Construction sector -0.9% in fifth consecutive decline
- Full report
Services-producing industries regained momentum in August following the first contraction in six months in July. Meanwhile, goods-producing industries were down, led by declines in manufacturing, oil and gas extraction, and construction activity.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals