Technical Outlook

-USDCAD is under the sellers influence with both he MAs below the price. The price may break above the nearest resistance at $1.33253.

-GBPUSD is trading inside a bullish channel and is about to form a double-top pattern.

CANADA (CAD): BOC interest rate decision

Bank of Canada (BOC) governing council members come to a consensus on where to set the rate.Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.  Canada’s interest rate is set at 4.75%.

The report is due Wednesday, 12 July 14:00 GMT

USDCAD Technical Analysis:

USDCAD is not in a strong trend but is seen inclined more toward bearish sentiment. Additionally, the price is trading below both the 200 and 50MA. The 50MA crossed below the 200MA, forming a death cross and signaling the price downward movement is due. In the new few trading weeks, the price was seen trading down by 2.49%, forming a swing low at $1.31166.

The price is in a push phase, forming a series of higher highs and lows but still trading below both MAs. The RSI line is at 49.64, showing the neutral overbought and oversold trading conditions. Traders here may wait for the immediate resistance of $1.33253 to be breached for a BUY trade, while if the price breaks below the support at $1.31294, traders may go for a SELL.

Pivot Points: USDCAD

UK (GBP): GDP (MOM)

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.  The UK’s month on month GDP rose to 0.2%.

The report is due Thursday, 13 July 06:00 GMT

GBPUSD Technical Analysis:

GBPUSD is in uptrend forming higher highs and higher lows. The price is trading both above the 50 and 200MA while trading inside the bullish channel, signaling the continuation of the trend. The chart shows the price trading between the support of $1.26227 and the resistance of $1.28473.

The double-top pattern is about to be formed if the price does not break above the resistance. However, if the price breaks above the resistance, the price may trade further up, while if the price comes down, it may trade below the support or go into a consolidation state. The RSI level is at 61.92, signaling a slight inclination towards an overbought condition. Traders at this should wait for the successful break of the levels for trade confirmation.

Pivot Points: GBPUSD

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