The Canadian dollar will be trading at risk today (Wednesday) with market focus on the New York session later tonight will also be directed at the results of the Canadian central bank's monetary policy meeting.
Like other central banks, the Bank of Canada (BOC) is also expected to keep interest rates unchanged as before at 5.00%.
The central bank's follow-up speech to signal the direction of its monetary policy will drive the Loonie's movement heading into week-end trade.
Thus, price movements on the chart of the USD/CAD currency pair will be observed.
If examined, the price movement has shown an interesting pattern since trading last week.
This is because the attempt to increase the price is seen stranded at the resistance level of 1.36000 which still manages to prevent the price from rising to a higher level.
The situation of last week continued until this week where yesterday's price increase also failed to cross the 1.36000 resistance after testing it.
Once again the attempt in the Asian session this morning also saw the price retreat back down and hovered around 1.35800 in trading that continued at the opening of the European session this afternoon.
However, investors are still placing expectations for price increases following the price movement still above the Moving Average 50 (MA50) support line if observed on the movement in the 1-hour time frame of the USD/CAD chart.
If the subsequent rally manages to break through the 1.36000 resistance, a further surge is expected to reach the next concentration level at 1.37000.
But if it doesn't happen, investors will be watching for any indication of the beginning of a bearish pattern to happen.
For expected decline, the price is seen to be heading towards the nearest concentration level which is around 1.35000.
See the picture of the price chart of the USD/CAD pair below for your technical analysis reference.
The chart displayed above uses the SaracenMarkets platform, open your trading account at SaracenMarkets today. – CLICK HERE – START TRADING NOW
