Key Points
- The US dollar was pressured and pushed below the 1.3500 support against the Canadian Dollar.
- There is an expanding triangle pattern formed with support at 1.3400 on the hourly chart of USDCAD.
- Recently, in Canada, the BoC Interest Rate Decision (April 2017) was announced by the Bank of Canada.
- The result was as expected, as the central bank kept rates at 0.5% in its April 2017 Monetary Policy Report.
USDCAD Technical Analysis
The US dollar after trading above 1.3650 against the Canadian Dollar came under pressure and started a downside move. The USDCAD pair broke many supports like 1.3600, 1.3580 and 1.3500 during the downside move.
The pair even traded below the 21 simple moving average, and currently trading just above 1.3400. There is an expanding triangle pattern formed with support at 1.3400 on the hourly chart.
The triangle support may push the pair towards 23.6% Fib retracement level of the last decline from the 1.3534 high to 1.3394 low. However, the pair may face sellers near 1.3430-40 for another downside move.
BoC Interest Rate Decision
Recently in Canada, the BoC Interest Rate Decision (April 2017) was announced by the Bank of Canada. The market was positioned for the central bank to keep rates at 0.5% in its April 2017 Monetary Policy Report.
The result was as expected, as the central bank kept rates at 0.5% in its April 2017 Monetary Policy Report. The report stated that “All things considered, Governing Council judges that the current degree of monetary stimulus is appropriate at present, and maintains the target for the overnight rate at 1/2 per cent”.
Overall, the USDCAD pair may continue its decline, and any correction towards 1.3430 may face resistance.
