USD/CAD ahead of BoC's interest rate decision: Re-taking the bullish bias?
Today at 14:00 GMT will be published the Bank of Canada’s interest rate decision, where the central bank is expected to leave unchanged its benchmark rate at 0.5%, as the analysts are waiting for no changes. At the same time, will be released the monetary policy report, that could bring some further hints in terms of economic policies for coming months. Remember that interest rates from the BoC have been on hold since May 2015.
Our technical analysis for USD/CAD at H4 chart is showing a key support around 1.3066, which is slightly below the 200 SMA. With dovish words by the Bank of Canada, the Loonie may perform a strong rebound at current levels and afterward, it can skyrocket towards the 1.3260 level in a first degree. By the other hand, if the pair manages to break the 1.3000 psychological level, then it can test the 1.2900 zone in coming days.