USD/CAD Bull Risk Through BOC Rate Decision
Here are the potential technical scenarios for USD/CAD spot FX rate through the Bank of Canada Interest Rate decision.USDCAD bull risk through 1.0610/57, to aim for key targets at 1.0805/54
- A still firm and resilient tone to start September as was the case into the end of last month to maintain the threat for further upside risks, evident since the push through the key 1.0440/45 chart barriers (now support).
- Having built a July base at 1.0250, ahead of the trend line from September 2012 and June low (1.0135), we see risks still higher this week and into mid-September.
- Dovish/ USDCAD Bullish Risks: The threat remains to the key barriers at the 1.0610 cycle for this year peak and critical 2011 secular high, 1.0657.
- Moreover, a break here would establish a far more important, long term base and aim higher to the 38.2% retrace of the 2009-11 sell off at 1.0805 and the key 2010 secular high at 1.0854.
- Hawkish/ USDCAD Bearish Risks: Below 1.0450 would ease immediate bull risks.
- However, only through 1.0295 signals a more neutral tone, which would then only shift negative below the August low, 1.0250.
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