USDCAD down on the day but mixed signals
The USDCAD is currently experiencing a dip in its trading value, with the lowest price point registered during early European trading hours. However, this decline halted at the same low point observed on May 10 and did not manage to reach the lowest price witnessed after the Bank of Canada’s rate hike yesterday. The lowest recorded price today was 1.3334, failing to reach yesterday’s low of 1.3319, which itself fell short of the May 8 low of 1.13132.
The Bank of Canada increased its rates by 25 basis points yesterday, putting an end to its “conditional pause” policy after two consecutive meetings without a rate change.
Looking at the hourly chart above, the move to the upside today did take the pair back into positive territory but fell comfortably short of the falling 100-hour moving average currently at 1.34041 (blue line in the chart above).
The price has remained below this 100-hour moving average for the past 7 trading days (since March 31), resulting in a net loss of approximately 262 pips at present levels. From a technical perspective, a shift above this 100-hour moving average is needed to tilt the short-term bias toward the upside. If this does not occur, the market remains in favor of sellers.