The USDCAD moved to the upside after the rate cut by the Bank of Canada. The market had priced in an 80% chance of a cut.
The price of the USDCAD is above 1.3700 and looks toward the swing area between 1.3714 and 1.3728. A downward sloping trendline connecting recent highs cuts across within that area as well.
Moving above would increase the bullish bias and have traders looking toward the high price from May 23 at 1.37424. Above that the. May 8 high comes in at 1.3762. The May 1 highcame in at 1.3784.
On the downside, or comes in at 1.3689 and then the 200 bar moving average on the 4-hour chart at 1.3674. Moving below that level moving average level would certainly be a disappointment
This article was written by Greg Michalowski at www.forexlive.com.
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