The USDCAD made an interesting attempt to push through the crucial “red box” resistance area, a zone traders have been eager to clear and maintain a hold above. During the pre-rate decision build-up, the pair almost breached this range, hitting 1.4464, just shy of the upper boundary set at 1.4466, before it began to retreat.
Comments from Tiff Macklem have strengthened the Canadian dollar, adding pressure for the pair to pull back. On the technical front, USDCAD has now slipped below the key zone, which lies between 1.44487 and 1.4466. This indicates that for the bullish momentum to return, a decisive break and hold above this range is necessary.
Without that upward movement, the short-term outlook leans towards the downside. Buyers had their chance but didn’t seize the momentum. The high point from yesterday at 1.4419 is worth watching as the next potential target. Dropping below this level would shift focus to the 100-hour and 200-hour moving averages, which snugly sit between 1.43798 and 1.43849.
