Hourly chart sees lower trendline broken
The USDCAD as just broken below its lower channel trendline at 1.35538 on the hourly chart. There is selling through the level to I.35429 so far. The next target comes at the low for the week at 1.35353. Close risk now is the broken trend line.
The initial move after the Bank of Canada decision was up toward the 100 hour moving average, and topside trend line. However, that rally stalled, and the price moved back below its 200 hour moving average. The trend line break adds to the bearish story. The low for the week (from Monday at 1.3535), followed by swing lows from July 4 and July 7 (at 1.3518-235) are downside targets now.
Helping the bullish case for the loonie (lower USDCAD) is the price of oil. It currently trades at $40.87 up 1.44%. The high price reached $41. The low price was down at $40.08.
The Bank of Canada press conference (the 1st for new Bank of Canada governor Macklem) is about to get underway.
