USDCAD Looks Vulnerable Ahead of BoC Monetary Policy Announcement

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.

USDCAD Looks Vulnerable Ahead of BoC Monetary Policy Announcement

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

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

Forex Analysis

EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March

As the EUR/USD chart shows at the start of the European session today, the exchange rate has dropped below EUR 1.08 per US dollar.

Tuesday's news contributed to this. According to Nasdaq.com, on March 26, 2024, The

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.