USD/CAD extended the bearish momentum for the 5th consecutive session with a 1.3306 low today and stingy -33-pips price action. Loonie sharp tone was supported by collapsing US dollar as the Index clocked 100.50 low today and crude oil bullish levels with 53.74 high today, considering Canada is a major oil producer.
Canadian Dollar awaits today BOC interest rate decision and forecasts are highly bet to leave it at current 0.5% which could create a pessimistic wave for the Loonie, but the pair could receive a lift by Gov. Poloz depending on the speech tone.
Fundamentals:
1- CAD - BOC Interest Rate Decision today at 2:00 PM GMT.
2- CAD - BOC's Gov. Poloz Speech at 3:15 PM GMT.
Technical overview:
Trend : Bullish Sideways
Resistance levels: R1 1.3376, R2 1.3432, R3 1.3515
Support levels : S1 1.3294, S2 1.3231, S3 1.3166
Remark : Market to consider the pair bullish despite weekly losses due to strong relatively strong USD. A break below S1 will increase selloffs and wash towards S2 level. Dips should fight S1 level. Closing under S2 level is a signal for trend reversal and market to consider the pair bearish. On the other hand, closing above R1 level will spark bullish forces towards R2 level. Expect high volatility with sideways destination shortly after BOC rate decision. Crude levels are vital for the Loonie.