Loonie moves higher as BOC tapers and now sees rate adjustment in H2 2022 versus 2023 previously
The USDCAD as of the sharply lower after the bank of Canada interest rate decision. The central bank tapered bond buying AND now sees the rate adjustment in H2 of 2022 versus 2023. Bearish news for the USDCAD (bullish for the loonie). Adam previewed the decision and hit the nail on the head.
The price has now pushed below a cluster of moving averages including the 100 and 200 hour moving averages and the 100 and 200 bar moving averages on the 4hour chart. The cluster comes between 1.25365 and 1.25582. That area is now resistance for the pair. Stay below is more bearish. Move above, and there is something unexpected going on.
On the downside, the next target area comes between 1.2493 and 1.25015.. Move below that and traders will look toward the lows for the week and last week between 1.2470 and 1.24775.
The decision was more bearish for the USDCAD pair. With a key cluster of MAs all broken, that is now risk for sellers. Stay below and the bearish momentum can continue.