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Denis Sergienko • 2021-12-08

Technical Analysis: USDCAD looks to 1.2550 on BOC day

Technical Analysis: USDCAD looks to 1.2550 on BOC day

A clear downside break of 100-SMA and monthly rising channel joins bearish MACD signals to keep USDCAD sellers hopeful as they brace for the Bank of Canada (BOC) Interest Rate Decision on Wednesday. It should, however, be noted that the RSI line inches closer to the oversold territory, suggesting a bumpy road to the south. That said, multiple tops marked during early November highlights 1.2590 as an intermediate halt before the quote drops towards 200-SMA and a six-week-old ascending support line near 1.2550.

During the pair’s rebound, 100-SMA level surrounding 1.2690 and the 1.2700 threshold may test the buyers. Following that, the lower line of the stated broken channel, around 1.2790, will be important to watch as a clear run-up beyond the same will open the door for the USDCAD buyers targeting the weekly resistance line near 1.2865. In a case where the pair rises past 1.2865, the 1.2900 round figure, upper line of the channel close to 1.2935 and the yearly peak of 1.2950 will probe buyers ahead of the 1.3000 psychological magnet.

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