The Bank of Canada will announce its interest-rate decision tomorrow at 10 AM. The expectations are for no change in policy. Economists expect rate cut in June. The market has a 70% chance of an April cut. Pricing for US cuts in 2024 is more aggressive, which has helped to support the US dollar in 2024.
Nevertheless, the price did break lower from last week’s peak at 1.35411. The fall took the price back below its 100-hour moving average, its 200-day MA, and the the 200 hour MA. Yesterday, the price decreased to test the swing area’s high between 1.3398 and 1.34144. Between that sits the 38.2% retracement of the move up from the December low.
Going forward, the 100-hour moving average and 200 day moving average at 1.3475 and 1.3482 will be key barometers for more bullish above and less bullish below. A break below the 200-hour moving average 1.34526, would tilt the short term bias more to the downside.