1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Wednesday March 8, 2012 – 9:00am EDT) – CA BOC Rate Decision

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Mar 7, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:

    Please see my trade plan for today:

    CA BOC Rate Decision
    Forecast 1.00%
    Previous 1.00%
    Pair to trade: USD/CAD

    Numbers we need:
    BUY USD/CAD 0.75%
    SELL USD/CAD 1.25%

    Economical Impact: High
    Typical Result: Hawkish is Good for Currency
    Occurrence: Scheduled 8 times per year
    Spike Probability: Good, we can see 60 pips on initial spike

    About our Triggers:
    CA GDP m/m is forecasted to arrive at 1.00%
    We are looking for a deviation of 0.25% either way on this trade.
    If we get 1.25% or better I will look to enter a SHORT position on USD/CAD and if we get
    0.75% or lower I will go LONG on USD/CAD.
    Should this report be triggered, we can expect to see about 60 pips on the initial spike.
    We have no known conflict for this release. This trade will have a good chance of a 30% retrace on the initial spike

    What is it? And why does the market care?
    The Bank of Canada (BOC) decision on short term interest rate. The decision on where to set interest rates depends mostly on growth outlook and inflation. The primary objective of the central bank is to achieve price stability. High interest rates attract foreigners looking for the best "risk-free" return on their money, which can dramatically increases demand for the nation's currency.

    A higher than expected rate is positive/bullish for the CAD.
    A lower than expected rate is negative/bearish for the CAD.

    Method I use to trade this:
    Stavro D’Amore Trading Method

    See my special Euro analysis

    I will look for a 30-50% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price. My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.

    I do recommend spike trading as an option when there is great uncertainty in the markets; also the liquidity is very good at the moment if you are using an ECN broker.

    Historical Chart and Data for CA BOC Rate Decision

    All the best

    Stavro D’Amore

Share This Page