USD/CAD Price Analysis: Retreats from 1.2745 hurdle, BOC Interest Rate Decision eyed

USD/CAD fades the previous day’s rebound from three-week low.
50-SMA, one-week-old resistance line guards immediate upside.
200-SMA, 50% Fibonacci retracement limit short-term declines ahead of 1.2560-55 area.
Firmer RSI, likely priced-in BOC rate-hike keep buyers hopeful to visit 1.2800 resistance.

Anil Panchal FXStreet

USD/CAD eases from the weekly top to 1.2730 during the initial Asian session on Wednesday. In doing so, the Loonie pair steps back from the convergence of the 50-SMA and one-week-long descending trend line ahead of the key Bank of Canada (BOC) monetary policy meeting.

Although the BOC is up for the first rate-hike since 2017, the action has mostly been priced-in, which in turn favors the odds of the pair’s run-up should the forward guidance disappoint traders.

Read: Bank of Canada Rate Decision Preview: Hawkish hike to exacerbate the pain in USD/CAD

Technically, sustained trading beyond the key SMAs join firmer RSI and receding the bearish bias of MACD to hint at the pair’s further upside.

However, a clear break above the 1.2745 immediate hurdle becomes necessary for the USD/CAD bulls to aim for January’s high near 1.2800.

Should the quote rises past 1.2800, the latest swing top surrounding 1.2880 will be in focus.

On the contrary, pullback moves may initially aim for the 200-SMA level surrounding 1.2680 ahead of the 50% Fibonacci retracement (Fibo.) of January-February upside, near 1.2660.

Following that, a six-week-old horizontal area near 1.2560-55 will lure the USD/CAD bears.

USD/CAD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2724
Today Daily Change	-0.0018
Today Daily Change %	-0.14%
Today daily open	1.2742

Trends
Daily SMA20	1.2721
Daily SMA50	1.2692
Daily SMA100	1.264
Daily SMA200	1.2565

Levels
Previous Daily High	1.275
Previous Daily Low	1.2654
Previous Weekly High	1.2878
Previous Weekly Low	1.2682
Previous Monthly High	1.2878
Previous Monthly Low	1.2636
Daily Fibonacci 38.2%	1.2717
Daily Fibonacci 61.8%	1.2752
Daily Pivot Point S1	1.2621
Daily Pivot Point S2	1.2565
Daily Pivot Point S3	1.2471
Daily Pivot Point R1	1.2772
Daily Pivot Point R2	1.2866
Daily Pivot Point R3	1.2922

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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