#USDCAD @ 1.34093 Bank of Canada rises rates as expected, expects to hold now. (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)]

• Bank of Canada rises rates as expected, expects to hold now.
• Loonie weakens after the announcement.
• USD/CAD jumps but then pulls back toward 1.3400.

The pair currently trades last at 1.34093.

The previous day high was 1.3414 while the previous day low was 1.3347. The daily 38.2% Fib levels comes at 1.3372, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3388, expected to provide support.

The USD/CAD jumped by more than 50 pips after the decision of the Bank of Canada and climbed to 1.3425, reaching the highest level since last Friday.

The Bank of Canada, as expected, raised the key interest rate by 25 basis points to 4.5%. In the statement, the central banks mentioned that will likely hold rates at this level while assessing the impact of recent policy moves.

Following the announcement, the Loonie weakened across the board. The USD/CAD rose from 1.3365 to 1.3426. It then pulled back. Loonie’s crosses remain volatile as market participants digest the decision.

The BoC signals that its intention is to remain on hold which is not a surprise for markets. Analysts were considering that the hike at the January meeting could be the last one, taking into account the current economic outlook.

The USD/CAD retreated under 1.3400 after a few minutes. More volatility is expected. The pair needs to remain well above 1.3400 to keep the doors open to more gains over the next hours. The next resistance stands at 1.3440. The key support is the 1.3340 area and a break lower could trigger a bearish acceleration toward 1.3300.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3366 at the time of writing. Pair opened at 1.3372 and is trading with a change of -0.04 % .

The pair is trading below its 20 Daily moving average @ 1.3467, below its 50 Daily moving average @ 1.3503 , below its 100 Daily moving average @ 1.3517 and above its 200 Daily moving average @ 1.3197

The previous day high was 1.3414 while the previous day low was 1.3347. The daily 38.2% Fib levels comes at 1.3372, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3388, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3341, 1.3311, 1.3275
• Pivot resistance is noted at 1.3408, 1.3444, 1.3475

[/s2If]
Join Our Telegram Group