Also expects rate rises to begin in the middle quarters of 2022
The Bank of Canada policy announcement was more hawkish as they announced they would stop the bond buying and expects a rate rises to begin in the middle quarters of 2022 (vs the second half of 2022).
The USDCAD push back below its 100 and 200 hour moving averages at 1.23697 and 1.23618. Those levels will now be close risk levels for shorts (higher CAD). Stay below is more bearish.
A swing area between 1.23097 and 1.23205 is the next downside target ahead of the low from October 21 at 1.2287.
Looking at the daily chart, the swing low from June 23 comes in at 1.22516. Below that, the pair from May 17 to June 11, traded in a fairly narrow range between 1.2006 (the low for the year) and 1.2145. The low for year was the lowest level going back to the week of May 17 in 2015.
