USDCAD falls on BOC hints of tapering QE

CAD moves toward Asian session low

The USDCAD has move lower after the Bank of Canada hinted of tapering QE.  The pair is testing the Asian session lows (and close for the day).  

CAD moves toward Asian session low

Looking at the hourly chart, the pair moved up to test the 61.8% retracement of the move down from the March 2021 hi to the March 2021 low. That level comes in at 1.25942.  The subsequent fall has taken the price back down toward the lows for the Asian session and the close from yesterday (at 1.25205).  The low just reached 1.25203. 

On more weakness, the broken 38.2% retracement 1.25065 and the converged 100 and 200 hour moving averages at 1.24889 are the next downside targets. With the price now back below the 50% retracement at 1.25503, that level will be all right now as close resistance.

Invest in yourself. See our forex education hub. Source

Leave a Reply

Your email address will not be published. Required fields are marked *