Technical Analysis: USDCAD

USDCAD reached a one-week low

On Wednesday, USDCAD ended down 0.58%. It reached 1.3498 at one point, which marked the lowest level since 27^th February.

The BOC kept the interest rate unchanged

On Wednesday, the BOC kept the interest rate unchanged at 5.00%, meeting expectations. It is too early to consider cutting the interest rate, the BOC Governor MacCallum said. The inflation is less likely to reach the target of 2%, the inflation rate is expected to be around 3% in mid-2024 and then start falling in late 2024.

The USDX declined

On Wednesday, as the Fed Governor Powell said the Fed will cut the interest rate later in the year, the USDX fell. It ended down 0.4% at 103.37.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USDCAD fell sharply yesterday. The bearish market trend prevailed in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, showing USDCAD will fall further. USDCAD will decline further with potential support at 1.3360 if it breaks below the support at 1.3440.

4-hour chart

On the 4-hour chart, USDCAD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred at a high level, showing the bearish market trend prevailed. USDCAD will decline further if it rebounds but is capped at the resistance at 1.3545.

Key resistance: 1.3545, 1.3600

Key support: 1.3440, 1.3360

Generally speaking, as the BOC made hawkish statements and the USDX fell, USDCAD is more likely to fall further in the short term.