The Bank of Canada interest rate decision will be released at 10 AM. For a full preview of that expectations see Adam Button’s post.
USDCAD is in a bullish trend on the hourly chart.
Technically, the bias remains bullish for the USDCAD, with expectations that dips will bought. Although the price is off the highs today, it does remain near the highest levels since 2009. Lower oil prices, inflation and a slower economy should keep the currency under pressure (the USDCAD strong). However, there is the potential that the decision is priced in, that the statement is not so dovish and traders will likely be watching for dip levels to be bought if there is a dip.
Looking at the hourly chart above, the yellow area, is where there are a cluster of technical levels including the:
- 100 hour MA at 1.1994
- 38.2% of the move up from the SNB low
- Upper and lower trend lines (discounting the SNB volatility)
- 200 hour MA (green line at 1.1959)
- 50% retracement (at 1.19578).
This area is the line in the sand/risk level for buyers/bulls in the market.
Closer support will be eyed against the 1.20457 are which corresponds to the high from last weeks trading. If dips cannot get below this level, the shorts are in trouble as the buyers refuse to give up even the closest of control levels.
