The Canadian dollar was little moved after the Bank of Canada released its interest rate decision. The USDCAD found resistance between 1.3208 and 1.3156. Could the pair move downwards as BOC moves to raise interest rates? What does this analysis reveal?
6 September, OctaFX – Officials indicated that while the economy is ripe for another rate hike, the ongoing trade talks between Canada and the US presented some short-term risks.
Traders expect the bank to hike in October when it will present its quarterly economic forecast. The bank pointed to an improving economic condition where household debt is falling, the housing market is stabilizing, and business investment is rising.
USDCAD Finds Resistance Between 1.3208 and 1.3156
USDCAD started a strong rally on Thursday last week. The pair moved from a low of 1.2887 to a high of 1.3208. This week, the pair has found resistance between 1.3208 and 1.3156, with the former being an important double top.
This means that the likely movement for the pair will be downwards as the BOC moves to raise interest rates in October. In the short term, the pair could reach the 38.2% Fibonacci Retracement level of 1.3100.
Disclaimer
This article about USDCAD Finds Resistance was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.