February 8, 2023

Forex Solution

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The USDCAD trades up two swing high area ahead of the rate decision

1 min read


BOC rate decision at the top of the hour

The Bank of Canada is expected to keep rates unchanged however they are expected to start to taper the bond buying in reaction to the post Covid recovery led by stronger employment. For Adam’s full preview of the interest rate decision CLICK HERE

BOC rate decision at the top of the hour_

Technically, the pair moved to a new session high after dipping earlier in the day. The moved to the topside took the price briefly above the swing area between 1.2623 and 1.2634. The high price just reached 1.2636, but has already dipped down to 1.26143 from the willing sellers against the resistance area. The 50% midpoint of the move down from the January 28 high (high for the year) comes in at 1.26224. That level is also another key barometer for the buyers and sellers today.

Through the decision, should the CAD we can further, getting above the swing high from March 30 at 1.26464 is the first hurdle. Above that and traders will look toward the falling 100 day moving average at 1.26741.  The last time the price traded above the 100 day MA was  back on November 2, 2020 when the price was up at 1.3328.  The 61.8% retracement comes in at 1.26833.

On the downside, point back below the 1.26000 level will be eyed as the close support. The lows today at 1.2582 ara will be the next target.  

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