USD/CAD Heads into Interest Rate Decision with Levels Above and Below
05/28/2015 9:00 am EST
The BOC is expected to keep interest rates the same, so Greg Michalowski, of ForexLive.com, takes a technical look at key levels to watch for this currency pair that—given the price is between the channel trend lines—has now defined the lines in the sand for a breakout.
BOC Expected to Keep Rates Unchanged
The Bank of Canada is expected to keep rates unchanged. Yet the USD/CAD pair has pushed higher with the overall US dollar bullishness in trading over the last couple weeks.
The price stalled right near the 61.8% of the move down from the 2015 high to the 2015 low at the 1.24845 level. The 50% and the 100-day MA come in at the 1.2371-76 area. This will be a key level.
Before that key level, there is another interim support level. The 1.2395 is a lower channel trend line on the hourly chart (see below). This is also the low in trading Wednesday. On the topside, the channel trend line there comes in at the 1.2512 level (see chart below).
With the price between the channel trend lines (and below the 61.8%), the pair has defined the lines in the sand for a breakout. Traders will be looking for surprises that might break the pair.
By Greg Michalowski of ForexLive.com