Morning Insights 22nd January

Simon Alagbe

Analyst

Instrument: USDCAD

Intraday: Bearish

Technical Analysis


Preference: Sell position is envisaged if price trades below 1.30745 with take profit at 1.30627.

Alternative scenario: Buy position is envisaged if price trades above 1.30805 with take profit at 1.30910.

Fundamentals:

CPI m/m (CAD) 2:30 PM

BOC Monetary Policy Report (CAD) 4 PM

BOC Rate Statement (CAD) 4 PM

Overnight Rate (CAD) 4 PM

BOC Press Conference (CAD) 5:15 PM

Comment:  It is a big day for the commodity supported Loonie as a number of economic data are due to be released. Recent GDP data from Canada support a dovish stance from the Bank of Canada but the recent United States–Mexico–Canada Agreement offer a slight ray of hope.


Instrument: EURUSD

Intraday: Bullish

Technical Analysis

Preference:  Buy position is envisaged if price trades above 1.10859 with take profit at 1.10945.

Alternative scenario: Sell position is envisaged if price trades below 1.10804 with take profit at 1.10699.

Fundamentals:

No major economic data with direct bearing on the pair.

Comment: The pair has found strong support around the 1.1076 price region with a strong retracement off the region envisaged in the session today. The dollar could be pressured by the reported case of the deadly Chinese coronavirus in the US raising fears of the widespread of the outbreak.

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