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USD/CAD Trading - FOMC meeting minutes - 23 Nov 2016

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USD/CAD Trading chart 23 Nov 2016
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Meeting minutes of the November FOMC meeting will be released today

USDCAD was volatile yesterday but priced picked up the bullish pace, closing the day near 1.3450. Continuing with this short term bullish trend in USDCAD, we expect to see further upside in the near term, especially as the November's FOMC meeting is due for release later today which will continue to put upside pressure in USDCAD.

November FOMC meeting could show how close the Fed was to raising interest rates in November and could also officially confirm the prospects for a rate hike in December.

This is USD bullish and could keep USDCAD supported to the upside. The markets are currently assigning a 100% probability for a Fed rate hike in December and this could only be strengthened further on hawkish meeting minutes.

USDCAD closed bullish after two days of declines. Price action was choppy near the support level of 1.3400 and price posted a lower low before reversing higher for the day.

Retail sales figures came out mixed with core retail sales rising while the headline retail sales stayed flat. On the 60-minute chart, USDCAD is currently retracing from yesterday's highs and this dip presents an opportunity for new CALL options to be initiated for USDCAD.

How to trade binary

Price is currently consolidated into a bullish flag pattern with the current 60-minute chart forming an inside bar. Look for USDCAD to retest 1.3420 support in the near term and buy CALL options for 21:00 GMT expiry time as price could eventually breakout from this consolidation and push towards 1.3500.

Alternately, if USDCAD breaks below 1.3420, then the previous support at 1.3400 will once again be tested. If this level breaks, then USDCAD could continue to push lower, thus making PUT options more ideal if USDCAD breaks down below the 1.3400 support level.

Still, the overall short term trend in USDCAD is bullish making CALL options more preferable in the short term. Keep an eye on 1.3420 to buy CALL options for 21:00 GMT expiry time.

Asset: USD/CAD
Direction: Call
Target price: 1.3420
Expiry: 21:00 GMT

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.

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