Technical Analysis: USDCAD

USDCAD reached the highest level since March

On Wednesday, USDCAD climbed and broke above the 1.380 mark to the highest since March. It ended up 0.42%.

The BOC announced that it will continue keeping the benchmark interest rate changed

On the 25^th October, the BOC announced that it will continue keeping the interest rate unchanged at 5%. A series of indicators show the balance in the Canadian economy has been nearly reached, and continued interest rate increases have eased price pressure, the BOC said. However, as slow progress has been made in cutting core inflation, the BOC is liable to further interest rate hike.

The US dollar index was prone to fluctuation and climbed

On Wednesday, as US economic data was strong, the USDX was prone to fluctuation and climbed. It ended up 0.27% at 106.57. US New Home Sales, y/y (September) increased from 676 thousand to 759 thousand Vs. 680 thousand (forecast), according to the data from the US Department of Commerce.

Technically speaking, the market trend is bullish in the short term

the Chart of the Day

On the chart of the day, USDCAD continued climbing. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing USDCAD will rise further. Investors should focus on whether USDCAD will break through the resistance at 1.386. It will rise further with potential resistance at 1.390 if it breaks above 1.386.

4-hour chart

On the 4-hour chart, USDCAD was prone to fluctuation and climbed. The market trend is bullish. In terms of technical indicators, MACD went upwards after golden cross occurred at the zero axis, demonstrating the market trend is bullish. USDCAD will rise further if it is stable above 1.375.

Key resistance: 1.386, 1.390

Key support: 1.375, 1.370

Generally speaking, as the BOC suspended the interest rate, and the US dollar climbed, there is a risk that USDCAD will rise further. Investors should focus on US economic data during the day.