#USDCAD @ 1.33632 holds lower ground on the Bank of Canada interest rate announcement day., @nehcap view: Further downside expected (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/CAD holds lower ground on the Bank of Canada interest rate announcement day.
• Sluggish MACD, sideways performance near 38.2% Fibonacci retracement challenge bears.
• Convergence of 200-day EMA, support line from early June portrays strong support.
• Buyers need to cross descending resistance line from mid-October 2022.

The pair currently trades last at 1.33632.

The previous day high was 1.3418 while the previous day low was 1.3342. The daily 38.2% Fib levels comes at 1.3371, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3389, expected to provide resistance.

USD/CAD portrays the typical pre-event anxiety as it makes rounds to 1.3370-60 during early Wednesday in Asia. In doing so, the Loonie seesaws near the 38.2% Fibonacci retracement level of the Loonie pair’s April-October upside amid the sluggish MACD signals.

It’s worth noting, however, that the USD/CAD pair appears clubbed between the 1.3250 support confluence and the descending resistance line from October 2022 near 1.3610. That said, the 200-day Exponential Moving Average (EMA) joins ascending trend line from June to highlight the 1.3250 as the short-term key support level.

Given the Bank of Canada’s (BoC) 0.25% rate hike already priced-in, the USD/CAD bears need either hawkish remarks from the BoC statement or the higher rate increase to extend its downturn.

Also read: Bank of Canada Preview: The final one, with a pause ahead?

In that case, the 1.3250 support confluence will gain the market’s attention, a break of which could direct the USD/CAD bears towards the 50% and 61.8% Fibonacci retracement levels, respectively near 1.3190 and the 1.3000 psychological magnet.

Alternatively, the previous weekly high of 1.3520 could gain the USD/CAD buyer’s attention in case of the pair’s recovery post-BoC.

Even so, a convergence of the multi-day-old resistance line and the 23.6% Fibonacci retracement level could challenge the Loonie pair’s further upside near 1.3610.

Trend: Further downside expected

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3371 at the time of writing. Pair opened at 1.3374 and is trading with a change of -0.02% % .

The pair is trading below its 20 Daily moving average @ 1.3474, below its 50 Daily moving average @ 1.3501 , below its 100 Daily moving average @ 1.3515 and above its 200 Daily moving average @ 1.3194

The previous day high was 1.3418 while the previous day low was 1.3342. The daily 38.2% Fib levels comes at 1.3371, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3389, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3338, 1.3302, 1.3262
• Pivot resistance is noted at 1.3414, 1.3453, 1.3489

[/s2If]
Join Our Telegram Group