BoC showed how it is done, ECB will follow?

There is no much time to digest the yesterday’s move by BoC as today we do have an ECB and Mario Draghi and all eyes are shifted there. Most of the instruments on the market continue the recent trend. Precious metals are climbing higher and USD is going down. One of the few exceptions is, for example, DAX, which is bravely climbing higher ending mid-term bearish correction.

DAX broke the upper line of the wedge and the crucial resistance on the 12300. With that on board, the upswing looks legitimate and sustainable.

CADJPY is our proposal for trading the rise of the interest rate instead of the oversold USDCAD. Here the upswing broke the neckline of the long-term iH&S formation which can be perceived as a strong bullish sign.

EURGBP is waiting for the decision inside a wedge, which is correcting a recent up trend. The sentiment is positive but regardless of the technical analysis, the direction will be shown by the ECB.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis