Today the pair has fallen slightly ahead of the important decision by the BOC. What can traders expect? Will the USDCAD pair continue moving lower? The following technical analysis reveals.
24 October, OctaFX – The Canadian dollar strengthened slightly as traders waited for the interest rates decision from the Bank of Canada. Today, the BOC is expected to raise interest rates to 1.75%, the first hike since Canada made a deal with the US on the new NAFTA.
This will be the second and possibly the final rate hike this year. Two more hikes are expected in 2019. This will be an important rates decision because of the disappointing inflation data released on Friday.
Market participants will listen to the BOC to learn more about its impact on future hikes.
USDCAD Technical Analysis
This month, the USDCAD pair has risen from a low of 1.2780 and reached a high of 1.3133. Today, it has fallen slightly ahead of the important decision by the BOC. The current price is along an important support level as shown in the four-hour chart below.
It is also at an important point where a crossover between the 28-day EMA and 14-day EMA is starting. This means it’s likely that the pair will continue moving lower, potentially to the 1.3000 level.
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