USD/CAD (current price: 1.2855)
The Canadian Dollar was in the spotlight on Wednesday, with the scheduled interest rate decision by the local central bank. The pair bounced back above 1.28, as we suspected in yesterday report, and it is trading a bit higher this morning in reaction to the weakness in gold and oil. The small correction could be the beginning of a move up to the upper band of the declining trend-channel, currently close to the 1.30 resistance level. The still rising 200-day MA is found near the 1.34 level, but a rally to it seems unlikely at this time, despite the oversold position of the pair.
Our assessment: USD/CAD might be headed even higher as Gold remains under pressure following the rate decision by the Bank of Canada.
