FXOpen
The US Dollar (USD) extended downside movement against the Canadian Dollar (CAD) on Wednesday, dragging the price of USDCAD to less than even 1.2750 ahead of some key economic events that are scheduled later in the New York session. The technical bias has already turned bullish due to a Higher Low and Higher High in the ongoing wave.
Technical Analysis
As of this writing, the pair is being traded around 1.2743. A hurdle may be noted near 1.2800-2804, the confluence of psychological number as well as intraday high of yesterday ahead of 1.2833, the high of the last major upside rally as demonstrated in the following daily chart.
On the downside, the pair is expected to find a support around 1.2715, the intraday low of yesterday ahead of 1.2126, the swing low of the last major dip. The technical bias will remain bullish as long as the 1.2126 support area is intact.
BoC Monetary Policy
The Bank of Canada (BoC) is due to release its monetary policy today during the early New York session. According to the median forecast of different economists, the central bank is likely to keep the benchmark interest rate unchanged at 0.75%. The interest rate decision will be followed by the release of monetary policy statement and BoC press conference. A hawkish tone about the interest rate could incite selling pressure in the price of USDCAD and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term if we get a bearish pin bar or bearish engulfing candle on the daily chart.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Germany's DAX 40 Index Flying High Despite Pessimistic National Outlook
For a number of years now, there has been a lot of discourse over the current situation and the future of the German domestic economy.
From both inside Germany and globally, analysts, government officials, and corporate leaders have demonstrated a
Volatility in the Pound Is Rising, the Euro is Consolidating
GBP/USD
At the end of last week, the British currency fell sharply, testing a significant support level at 1.2300. The resumption of the downward trend for the pair became possible after some statements by British officials:
- On Wednesday,
The Price of Gold XAU/USD Shows Strongest Fall in Almost 2 Years
On Monday, the price of gold fell from USD 2,386 to USD 2,333 per ounce — this is the strongest drop in one day in almost 2 years, according to Bloomberg. On Tuesday morning in the Asian session, the