USDCAD Technical Analysis


As BOC monetary policy decision is due to be announced later today, how would the USDCAD pair trade today? Find out with the 17 January USDCAD Technical Analysis.

17 January, GKFX– The USD/CAD pair gained some positive traction on Wednesday, albeit seemed lacking strong follow-through momentum beyond the 1.2450-60 region.

Key Quotes

   • Goodish USD rebound helps gains some positive traction.

   •  Bulls seemed lacking conviction ahead of BOC decision.

The pair continues to find decent support around the 1.2400 handle and reviving greenback demand provided an additional boost on Wednesday. In fact, the key US Dollar Index staged a solid rebound from 3-year lows and has been one of the key factors driving the pair higher through the early European session.

Meanwhile, a subdued action around oil markets, with WTI crude oil holding stable below the $64.00/barrel mark, did little to lend any support to the commodity-linked Loonie and remained supportive of the pair’s modest uptick.

It, however, remains to be seen if the pair is able to build on the up-move or runs through some fresh offers as traders start repositioning themselves for today’s key event risk – BOC monetary policy decision, due to be announced later today.

The Canadian central bank is universally expected to hike interest rates by 25-bps points and hence, the accompanying policy statement, and subsequent press conference might determine the pair’s next leg of directional move.

17 January USDCAD Technical Analysis

A sustained move beyond 1.2460 level is likely to trigger a short-covering bounce towards reclaiming the key 1.2500 psychological mark en-route 1.2545 horizontal resistance and 100-day SMA barrier near the 1.2585-90 region.

On the flip side, the 1.2400 handle might continue to act as immediate support, which if broken decisively is likely to accelerate the fall back towards 1.2355 level before the pair eventually drops to 1.2300-1.2290 strong horizontal support.

Disclaimer

This article “17 January USDCAD Technical Analysis” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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