The USDCAD price recently hit our target area highlighted in a previous video. Recent rate announcements from the Bank of Canada showed a hike in rates and more to come, so what is next for the pair?
Watch the video to learn more…
We highlighted USDCAD in a previous video as the price consolidated on a higher time frame, looking for the price to break lower and move to the key zone we will be talking about in today’s analysis. The news for today added some volatility to the USDCAD pair as we had a rate statement announcement from the Bank of Canada and some ISM Manufacturing PMI data out of the US. The Bank of Canada did raise rates by 50bps to 1.5% and signalled more rates to follow as they race to control the rising inflation rate. This outlook is in line with most central banks at the moment and will likely be the same for others in the near future. The Manufacturing PMI data out of the US came in higher than previous and forecasts which saw the price of the USD move higher against its counterparts.
Looking at the chart we can see that the price has retested an untested weekly point of control after the news announcements and had a slight rejection. This could be some profit taking from the institutions or could be new orders entering the market. Either way in order to look for a potential reversal back to the recent consolidation level we need to see the price break above the recent highs. If the price can trade above this level we can assume that buyers are stepping in and driving the price higher.
Have you seen our USDJPY analysis? You can watch it here.
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