9/7/2011 BOC Rate Statement / Overnight Rate (0300 HI time / 0900 EDT)
Previous Revision: n/a
SPIKE / REVERSAL
Started @ 1.0060
1st Peak @ 1.0024 – 0301 (1 min)
Reversal to 1.0071 – 0307 (7 min)
Notes: The BOC left its main interest rate unchanged today citing the global economic outlook has deteriorated in recent weeks as several downside risks have been realized. The market reacted by spiking downward. The spike did not cross any SMAs or Pivots, so it was free to dive. Still keep an eye on the range chart. After hitting the peak at 1.0024, it retreated and hovered between 1.0035 and 1.0044 for 4 sec then fell again. I would set up an exit at the PP line at 1.0022, then close manually at about 1.0030 when it was not hit. The reversal was quick and exceeded the drop.