Bank of Canada raised the
key rate by 25 bps to 1.50%, as it was largely anticipated. The Bank keeps its projection for close to 2%
GDP growth over 2018-2020 and sees unprtentious effects
of tariffs on economic growth and prices. As the time of writing the USD/CAD pair is trading at 1.3117, correcting from
the 3-week low at 1.3065 on the rate
hike announcement from BoC. Technically apeaking the short term outlook remains neutral to bearish. On the
four hour time frame the price is developing below the flat 50-day and 100-day
SMAs and also the flat 20-day SMA is marching with the current price.RSI and stochastic are showing bearish
momentum but yet remain above their mid-lines.
Stong support is provided by the 1.3100 level which was for shortly broken
today. The pair vulnerable around this area so I expect another test and in case
of success bears will try next one at 1.3064. Looking to the upside first
resistance is seen at 1.3174 and second at 1.3193.
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