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Market Analysis

Home » Featured » USDCAD Awaits BOE Interest Rate Decision

USDCAD Awaits BOE Interest Rate Decision

Posted by FXTimes in Featured - March 9th, 2016 1:02 pm GMT

CADJPY Canadian Dollar

Key Points

  • US dollar corrected a few pips against the Canadian Dollar, and traded towards 1.3380.
  • There is a bullish trend line formed on the hourly chart of the USDCAD pair, which helped the bulls to prevent losses.
  • US MBA Mortgage Applications released by the Mortgage Bankers Association posted a rise of 0.2%, better than the last decline of 4.8%.
  • In a couple of hours, the BoC Interest Rate Decision will announced by the Bank of Canada, which may create a lot of moves in the USDCAD pair.

Technical Analysis

The US dollar after trading as high as 1.3450 against the Canadian Dollar found sellers and corrected down. The downside was stalled near a bullish trend line formed on the hourly chart of the USDCAD pair, which acted as a support and prevented losses.

USDCAD

The pair also found support near the 50 hourly simple moving average. So, overall the trend line support may play a major role for the pair in the near term.

On the upside, the 200 hourly simple moving average can be seen as a resistance for more gains in the USDCAD pair.

US MBA Mortgage Applications

Today, the US MBA Mortgage Applications, which presents various mortgage applications was released by the Mortgage Bankers Association. The outcome was better compared with the last decline of 4.8%, as there was a rise of 0.2%. Overall, the report was positive, but considering it as a low risk event the impact was minimal.

The most important release for the Canadian dollar is lined up in a couple of hours. The BoC Interest Rate Decision will announced by the Bank of Canada, which has a potential to create a lot of moves in the USDCAD pair.

Overall, a lot depends on the upcoming release, but one should keep an eye on the trend line support area for the next move.

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