• 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.

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.

USD/CAD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price 1.3371
Today Daily Change -0.0003
Today Daily Change % -0.02%
Today daily open 1.3374
 
Trends
Daily SMA20 1.3474
Daily SMA50 1.3501
Daily SMA100 1.3515
Daily SMA200 1.3194
 
Levels
Previous Daily High 1.3418
Previous Daily Low 1.3342
Previous Weekly High 1.3521
Previous Weekly Low 1.3351
Previous Monthly High 1.3705
Previous Monthly Low 1.3385
Daily Fibonacci 38.2% 1.3371
Daily Fibonacci 61.8% 1.3389
Daily Pivot Point S1 1.3338
Daily Pivot Point S2 1.3302
Daily Pivot Point S3 1.3262
Daily Pivot Point R1 1.3414
Daily Pivot Point R2 1.3453
Daily Pivot Point R3 1.3489

 

 

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