USDCAD Looks Vulnerable Ahead of BoC Monetary Policy Announcement

FXOpen

The US Dollar (USD) extended downside movement against the Canadian Dollar (CAD) on Wednesday, dragging the price of USDCAD to less than even 1.2750 ahead of some key economic events that are scheduled later in the New York session. The technical bias has already turned bullish due to a Higher Low and Higher High in the ongoing wave.

Technical Analysis

As of this writing, the pair is being traded around 1.2743. A hurdle may be noted near 1.2800-2804, the confluence of psychological number as well as intraday high of yesterday ahead of 1.2833, the high of the last major upside rally as demonstrated in the following daily chart.

USDCAD Looks Vulnerable Ahead of BoC Monetary Policy Announcement

On the downside, the pair is expected to find a support around 1.2715, the intraday low of yesterday ahead of 1.2126, the swing low of the last major dip. The technical bias will remain bullish as long as the 1.2126 support area is intact.

BoC Monetary Policy

The Bank of Canada (BoC) is due to release its monetary policy today during the early New York session. According to the median forecast of different economists, the central bank is likely to keep the benchmark interest rate unchanged at 0.75%. The interest rate decision will be followed by the release of monetary policy statement and BoC press conference. A hawkish tone about the interest rate could incite selling pressure in the price of USDCAD and vice versa.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term if we get a bearish pin bar or bearish engulfing candle on the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Gold Price Plunges After Climbing to $3,500 for the First Time
Commodities

Gold Price Plunges After Climbing to $3,500 for the First Time

As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
Shares

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report

On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.

Moreover, the price is

Market Volatility Continues to Rise
Forex Analysis

Market Volatility Continues to Rise

Amid global economic instability and escalating tariff tensions, the EUR/USD and GBP/USD currency pairs are showing strong growth. Following statements by Donald Trump regarding the potential dismissal of Federal Reserve Chair Jerome Powell, pressure on the US dollar

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.