USDCAD downside momentum stalls at the 100-DMA after the Bank of Canada decision
The CAD has been on a hot kept running of frame to begin the week however after the BOC decision and Poloz’s announcement yesterday, things are beginning to chill. USD/CAD broke underneath the upwards trendline from October toward the beginning of the week and that accelerated a further drawback move which saw the pair test the 100-DMA.
That is the key line in the sand for a further drawback augmentation for the present. It’s been a decent keep running for dealers however this is the place exchanging opinion gets a tad captured in the center.
Poloz essentially implied that the central bank will be more information subordinate pushing ahead as it surveys further rate climbs. The fact that he didn’t rule them out altogether is a positive for the CAD. However, what it implies now is that the money’s valuing of rate climb desires will be fairly delicate towards economic information and oil costs.
Meanwhile, a fall of over 1% in oil costs isn’t helping the commodity-linked CAD either, but it doesn’t mean that the bullish momentum is gone either.
Traders will currently need to reassess the pair at these levels as cost will hope to undermine the 100-DMA trying to break to the drawback and sellers will protect the near term bearish bias in that scenario.For buyers, crushing spirit over the 100-hour MA will be a decent stage to see a further recuperation in the pair.