USD/CAD Price Analysis: Snaps two-day uptrend ahead of BOC

USD/CAD takes offers around intraday low, extends pullback from monthly resistance line.
Bullish MACD, sustained trading beyond 50-day SMA keeps buyers hopeful.
BOC is expected to keep the benchmark rate unchanged, signal tapering.

Anil Panchal FXStreet

USD/CAD holds lower grounds near 1.2600, despite the latest bounce off intraday bottom, during early Wednesday. In doing so, the quote justifies the previous day’s failures to cross the three-week-old falling trend line ahead of the Bank of Canad (BOC) monetary policy meeting.

Read: Bank of Canada Preview: Dovish surprise to lift USD/CAD

Although the loonie pair’s failure to cross the near-term key hurdle back sellers, bullish MACD and the successful break of 50-day SMA, around 1.2585 by the press time, portray the underlying momentum strength towards the north.

Hence, the BOC decision will be the key as any dovish surprise may quickly cross the stated resistance line and 50% Fibonacci retracement of January-March downside, near 1.2625.

The same could propel the quote towards the late March peak surrounding 1.2650 ahead of highlighting 61.8% Fibonacci retracement level of 1.2685.

However, a downside break below the 50-day SMA level of 1.2585, backed by an upbeat BOC outcome, may not hesitate to test the monthly low of 1.2471.

USD/CAD daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2606
Today Daily Change	-3 pips
Today Daily Change %	-0.02%
Today daily open	1.2609

Trends
Daily SMA20	1.2564
Daily SMA50	1.2587
Daily SMA100	1.2676
Daily SMA200	1.2946

Levels
Previous Daily High	1.2624
Previous Daily Low	1.2479
Previous Weekly High	1.263
Previous Weekly Low	1.2477
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2568
Daily Fibonacci 61.8%	1.2534
Daily Pivot Point S1	1.2518
Daily Pivot Point S2	1.2426
Daily Pivot Point S3	1.2373
Daily Pivot Point R1	1.2663
Daily Pivot Point R2	1.2716
Daily Pivot Point R3	1.2808

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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