The BOC rate decision looms ahead. What are the technicals saying ahead of that decision?
When you go into a key event like a central bank rate decision, the potential for a fundamental move in the price action increases. That is reflective in the technical levels too. IN this video I outline what would need to happen to increase the bearish bias (the bias is tilted to the downside marginally). More specifically, getting below the 38.2% retracement of the move-up from the December 27 low at 1.34019. Get below that level - and then the 50% midpoint at 1.33588 - would add to the bearish bias.Conversely, with the price currently below its 100 and 200-hour moving averages near 1.34648, getting above that level and then the 200 day moving average at 1.34821 would be needed to increase the bullish bias.Those are the key levels. In the video, I outline and show why those levels are so important. This article was written by Greg Michalowski at www.forexlive.com.
When you go into a key event like a central bank rate decision, the potential for a fundamental move in the price action increases. That is reflective in the technical levels too.
IN this video I outline what would need to happen to increase the bearish bias (the bias is tilted to the downside marginally). More specifically, getting below the 38.2% retracement of the move-up from the December 27 low at 1.34019. Get below that level - and then the 50% midpoint at 1.33588 - would add to the bearish bias.
Conversely, with the price currently below its 100 and 200-hour moving averages near 1.34648, getting above that level and then the 200 day moving average at 1.34821 would be needed to increase the bullish bias.
Those are the key levels. In the video, I outline and show why those levels are so important. This article was written by Greg Michalowski at www.forexlive.com.
