24.10.201808:08 Forex Analysis & Reviews: Trading plan for 24/10/2018

There was an interesting session on the SP500 market as in the first hour after the start of the Wall Street session it fell over 2.0% (dropped under 2700 points). In the following hours, however, the bulls were more active on the market and the price continued to return to 2750 points. WTI oil prices were also dropping sharply - the rate dived at USD 66 per barrel - in this case, there is no question of the rebound: currently quotations are at 66.50. On the currency market, relative calm, EUR / USD remains lower at 1.15. Similarly GBP / USD, which is under 1.30. USD / JPY returns to the upper limit of the fluctuation band 111.95 - 112.90.

On Wednesday, the 24th of October, the event calendar is busy with important data releases. During the London session, France, Germany and the rest of the Eurozone will publish the PMI Servies, Manufacturing and Composite data. During the NY session, the Bank of Canada will make the decision regarding the interest rates level and present the Monetary Policy Report. The US will publish the New Home Sales data and Composite PMI data. There are some speeches scheduled for today as well from FOMC Member Raphael W. Bostic and Loretta Mester.

USD/CAD analysis for 24/10/2018:

Market participants expect the BoC to hike the interest rate from 1.5% to 1.75% today and update the monetary policy. If the BoC is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the CAD. Likewise, if the BoC has a dovish view on the Canadian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. The market is currently struggling to break through the technical resistance zone between the levels of 1.3113 - 1.3133 and is testing the support at the level of 1.3081. If the BoC will deliver, then the most likely move is to the downside, so the lover support levels at 1.3027 and 1.3018 will likely to be hit. If BoC will fail to deliver, then the market will likely break through the technical resistance zone targeting the next resistance at the level of 1.3175.