The USDCAD is moving higher and trading at its highest level for the year, and going back to 2020. The buyers are in strong control and that is coming ahead of the meeting BOC and interest rate decision scheduled for 9:45am ET tomorrow. The BOC is expected to cut rates by 50 basis points which is helping to weaken the CAD and support the USDCAD.
So basically customers prefer.
However, markets are overbought. There is always the possibility of a corrective movement that could disrupt the movement.
As a result, it is important to understand the levels that would lower the bias at least in the short term for the pair. If the price can get below these targets, the sellers can claim a technical victory. In addition, it helps to give the customers a reason to relax.
Looking at the hourly chart, the first target would be 1.4145. That level was a corrective high after the high from earlier in November. In trading on Friday and again yesterday, it was a swing level of importance (see circles with red numbers on the chart below).
Move below that level – and stay below it – and the sellers can claim a technical victory, at least in the short term.
Another target range comes in between 1.4088 to 1.4105. Yesterday, the price moved into that area and found support buyers. The price bounced higher.
Without such trends and the customers still have a strong control. The trend is still upward.
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