The USDCAD is trading to new session highs and highest levels since March 17 ahead of its interest rate decision at 10 AM ET. The Bank of Canada is expected to raise if 50 basis points to 1.0% from 0.5%. Earlier today, the reserve Bank of New Zealand also raised by 50 basis points. The NZDUSD initially moved to the upside, but has since trended to the downside. The USDCAD has been following the "USD higher" path ahead of it's 50 basis point hike expectations.
Technically, the price is approaching its 100 day moving average at 1.2686. The high price just reached 1.26744. There are some swing highs and lows going back to early March between 1.2645 and 1.2656. Move above that area and it opens the door for further upside potential. The 61.8% retracement of the move down from the March 8 high comes in at 1.27098. There would be the next upside target on a break of the aforementioned swing area.
On the downside the move higher today extended above its 50% midpoint 1.2651. That is between a swing area between 1.2645 and 1.26566. Move below that level and the 100 day moving average at 1.26223, followed by the rising 100 hour moving average 1.26097 will be targeted. Recall from yesterday, the price fell toward that 100 hour moving average and found dip buyers near the level
