The USDCAD found support buyers yesterday to start the week, near a swing area between 1.3344 and 1.3358 (see red numbered circles 8 and 9). The low reached just below that level but well off the most recent cycle low from January 13 at 1.33204. The sellers turned to buyers and pushed the price higher. That run higher found sellers near the 200 hour MA (green line) and the rotation back lower restarted.
That rotation lower saw the price today reach back into that swing area where once again there has been some buying on the dip/low risk buying against the area.
On three separate occasions, the price entered that swing area and bounced. The most recent bounce is the biggest with the price trading up to 1.3390 (it is trading near that level now). The 200 hour MA (green line) at 1.3406 is the next key target followed by the 100 hour MA (blue line) at 1.3423. Get above both is needed to increase the bullish bias for the pair. The upper part of the Red Box at 1.34369 to 1.3441 would be the next target above the MA levels.
The BOC interest rate decision is tomorrow at 10 AM with the press conference to follow at 11 AM. The expectations are for a rise of 25 basis points to 4.5%. The market will be focused on the statement and comments for clues to the terminal level.