Technical Analysis: USDCAD probes 200-bar SMA ahead of BOC
In addition to the broad US dollar strength, mainly driven by risk-off mood, WTI's plunge offered an extra hand to the USDCAD bulls that currently attack the mid-August tops. The pair's intraday high of 1.3256 fails to keep the quote above 200-bar SMA as traders turn cautious ahead of the Bank of Canada's (BOC) monetary policy meeting. Also probing the buyers is the RSI's overbought conditions. As a result, counter-trend traders are looking for an opportunity and can capitalize a dip below 1.3200 immediate support to aim for last Thursday's high around 1.3160. Though, a 100-bar SMA level of 1.3137 could challenge the quote's further weakness.
If at all the BOC follows the global suit of bearish bias, which is most likely, the pair can cross 1.3270 resistance and target a 50% Fibonacci retracement level of 1.3318 during the additional rise. It should, however, be noted that there are multiple upside barriers between 1.3335 and 1.3345 that might question the quote's north-run past-1.3318, if not then 61.8% Fibonacci retracement around 1.3400 will be in the spotlight.