BOC rate decision and lower oil price help to push USDCAD higher. Technicals more bullish.

July 23, 2024 at 06:43PM
As the market awaits the Bank of Canada rate decision tomorrow, the USDCAD has moved higher in anticipation of a cut in rates. Also helping the pair is sharply lower oil prices which has take the price down nearly 8% from the high reached last Wednesday (today the price bounced off of $76.40).

Technically, the USDCAD has been trending since bottoming near two weeks ago near the 200-day MA and the 38.2% of the move up from the December 2023 low. Last week, the price based near the 100 bar MA on the 4-hour chart and has been trending higher since that low.

The high of the range since April comes in at 1.3803. Getting above that level should lead to increased upside momentum and a run toward the high from 2024 at 1.38448.

What would disappoint the buyers?

A move back below the 1.3734 level would be a negative technical break. Below that and traders will look back toward the 200 bar MA on the 4-hour chart at 1.3691.

This article was written by Greg Michalowski at www.forexlive.com.