USD/CAD before BoC interest rate decision: Are the bulls ready to come back?
Today will be a volatile session for CAD pairs, as the Bank of Canada will release its interest rate decision at 14:00 GMT, where the markets are forecasting an unchanged outcome on the 0.50% which has been held since May 2015. At the same time, the Ivey PMI will post the number for August and analysts are expecting a decline from 57.0 to 55.4 and that could add pressure on the Canadian dollar across the board, in the context of recent Oil macroeconomic's developments.
Our technical picture for USD/CAD at H4 chart is strongly bearish, as the pair is currently facing a strong support at the 1.2837 level, as we're still seeing weakness on the Loonie since the last week. That zone should provide a pivot move and eventually it can resume the bullish structure, but a consolidation below that level, can open the doors to visit the 1.2779 area on a short-term basis.