Highlights of the Bank of Canada rate decision
- No change in 0.25% overnight rate, as expected
- Both the global and Canadian economies are evolving broadly in line with the scenario outlined in July
- The rebound in the United States has been stronger than expected, while economic performance among emerging markets has been more mixed
- BOC continues to expect the recuperation phase to be slow and choppy as the economy copes with ongoing uncertainty and structural challenges.
- CPI expected to remain well below target in the near term
- Repeats that BOC "will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved"
As I discussed in the previous review, the EUR did break the upside trendline yesterday but today I found that we got the re-test of the lower diagonal.
Analyzing the current trading chart of EURI found that there is the reaction from buyers and potential for new re-selling.
Watch for selling opportunities on the rallies with the downside target at 1,1710.
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Platinum and Crude Oil today and on the bottom Lumber and VIX
Key Levels:
Resistance: 1,1850
Support levels: 1,1760 and 1,1710
