Today’s main event will be the US inflation data, but the rate decision from the BoE also got some attention.
USDCAD is forming a bearish flag ahead of the CPI. This pair likes and uses trend continuation patterns so we should see a further drop; obviously only if the CPI allows us to do so.
EURGBP was pointing south even without the help of the BoE. We saw a failed wedge, false breakout, then a drop and a rectangle. The rectangle on the local support promoted a downswing and that’s exactly what happened. The next support is on the 38.2% Fibonacci.
CADJPY presents a good trading opportunity for long-term traders. They can use the massive inverse head and shoulders pattern and positive swap points.