Blog post

Technical Analytics: USDCAD carries BOC-led rise towards the key SMAs

While a dovish hint from the Bank of Canada (BOC) triggered the USDCAD pair's rally on Wednesday, prices do carry the strength forward during early Thursday. Buyers now aim to confront a 100-day SMA level of 1.3180 whereas 200-day SMA around 1.3240 will be on their radar afterward. It should, however, be noted that 50% Fibonacci retracement and descending trend line since June 2018, at 1.3260 and 1.3290 respectively, will challenge optimists during the pair's rise beyond 1.3240.

In a case where the prices take a U-turn, 23.6% Fibonacci retracement near 1.3100 and 1.3030 can entertain short-term sellers ahead of highlighting 1.3000 round-figure. If at all the bears manage to dominate past-1.3000, 1.2950 and 1.2880 will be their choice.

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