Technical Analysis

USD/CAD holds close to key resistance ranges with BOC assembly eyed

USD/CAD continues to carry round resistance round 1.3360

USD/CAD D1 06-03

The pair is holding on the higher finish of the swing area resistance round 1.3340-60 however upside can be being restricted by the 76.four retracement stage @ 1.3384. These key resistance ranges are persevering with to maintain a lid on value motion as the main target now turns in the direction of the BOC assembly later at present at 1500 GMT.

The Canadian central financial institution is predicted to maintain charges unchanged however the query shall be whether or not or not they take a extra dovish stance in mild of current developments within the economic system. Final Friday’s GDP report wasn’t fairly and if something, it would proceed to counsel tailwinds for the economic system as we start the brand new yr.

Therefore, relying on the language utilized by the central financial institution to speak their cautious method, that can set the tone for the way the loonie will react later.

As for key ranges on the charts, an upside transfer in USD/CAD will acquire additional traction upon a break of the 1.3384 stage. Additional resistance is then solely seen on the early December highs round 1.3425 and 1.3445.

In the meantime, the important thing draw back stage to be careful for would be the 100-day MA (purple line) @ 1.3276. That shall be a notable stage as a break under that can see the bullish bias within the pair relinquished. Of observe, the 100-hour MA additionally sits on the stage @ 1.3274 so that can play an element in defining near-term bias within the pair as properly.

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