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Denis Sergienko • 2022-12-07

USDCAD signals further run-up towards 1.3800 ahead of BOC

USDCAD signals further run-up towards 1.3800 ahead of BOC

A clear upside break of the 50-DMA and a descending trend line from October’s peak keeps USDCAD bulls hopeful ahead of the Bank of Canada’s (BOC) interest rate hike announcement. That said, the Loonie pair’s upside towards the previous monthly top surrounding 1.3800 appears imminent. However, multiple hurdles near 1.3850 could challenge the quote’s additional north-run, a break of which will direct the buyers towards the yearly high marked in October surrounding 1.3980.

Alternatively, USDCAD pullback remains elusive unless the quote remains beyond the 50-DMA level near 1.3565. Also testing the bears is the aforementioned resistance line from October 13, now support near 1.3550. It’s worth noting that the three-week-old ascending support line, close to 1.3430, acts as an additional downside filter for the Loonie pair before directing the bears towards the 1.3230-25 horizontal support comprising July’s high and November’s low.

Overall, the USDCAD pair has already flashed a bullish signal before the BOC’s widely anticipated rate hike.

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