USD/CAD ahead BoC Interest Rate Decision: Can we see a higher continuation?
Today at 14:00 GMT will be the Bank of Canada's interest rate decision, where it's expected to left unchanged the current 0.5%, according to the analysts and some polls released by news agencies such as Reuters. Afterwards, a monetary policy report is expected to be released, which also should give some hints above future steps for Central Bank regarding inflation. As the Brexit's outcome is still moving the markets, Canadian economy could be affected by the uncertainty regarding the sit-and-wait stance from US Fed about raise rates.
The technical picture for USD/CAD at H1 chart is calling for a bullish continuation, as the Loonie remains supported by a trend line and the 200 SMA. However, in case that the BoC gives us today hints of further easing, the pair may move into an enormous volatile wave, and it can break the resistance above the 1.3087, which also should open the doors to test the 1.3171 level. In the bearish scenario, a breakout below the 1.2978 level will expose the July 7th low at 1.2875.