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USD/CAD forex signal - BoC Business Outlook Survey - 09 Apr 2018

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Signal Details
Entry Price: 
1.2780
Take Profit: 
1.2882
Stop Loss: 
1.2725
Direction: 
Buy
Result: 
Loss
How we trade
5/5 of 4 ratings

The Bank of Canada will be releasing the business outlook survey data today. The BoC's business outlook survey is a summary of the interviews conducted by the central banks regional offices. The interviews are conducted with the senior management of about 100 established firms in Canada.

The BoC's business outlook survey is expected to be released at 14:30 GMT today. The business outlook survey aims to gather the perspectives of the firms on business and trade outlook. Recently, Canada also came under pressure with President Trump wanting to renegotiate the North American Free Trade Agreement or NAFTA with Canada and Mexico.

Although Trump's rhetoric around NAFTA was seen to be a bit more flexible, the markets are not however taking it lightly. Canadian export markets were seen coming under pressure due to the trade uncertainty.

This was a risk that the Bank of Canada also explicitly mentioned in its recent few monetary policy meetings. Due to the uncertainty, today's BoC business outlook survey is expected to reflect the business community's concerns surrounding the global trade.

Today's forex trading signal is USDCAD, the currency pair was seen weakening despite the Canadian dollar coming under pressure and weaker oil prices. In the near term, we expect USDCAD to post a correction to the decline.

Therefore, we would go long on USDCAD at 1.2780 targeting the next immediate resistance level at 1.2882 level with stops at 1.2725. We expect USDCAD to rebound off the current levels and rally toward the 1.2780 level where resistance is likely to be established and thus close higher on the day.

forex signal usdcad 09 apr 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.