Technical Analysis: USDCAD

USDCAD rebounded after falling for two consecutive days

On Wednesday, USDCAD rebounded steadily after falling for two consecutive days. It ended up 0.24% at 1.3769.

The BOC cut the interest rate by 25 basis points

On Wednesday, local time, the BOC (Bank of Canada) cut the interest rate by 25 basis points to 2.50%, meeting market expectations. It reduced the interest rate for the first time in 6 months.

The interest rate will be further cut if economic risks continue rising in following months, the BOC said.

The USDX reached the 97 mark again

On Wednesday, the USDX rebounded from a low level, and reached the 97 mark again. It ended up 0.37% at 97.02.

USDCAD rebounded

4-hour chart

On the 4-hour chart, USDCAD rebounded steadily from a low level. It is likely to rebound in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing that USDCAD will rise further. Investors should focus on whether USDCAD will break through the resistance at 1.383. It will climb further with potential resistance at 1.389 if it breaks above 1.383.

one-hour chart

On the one-hour chart, USDCAD rebounded steadily. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that the market trend is bullish. Investors should focus on whether USDCAD will break through the support at 1.376. It will climb if it retreats but is stable above 1.376.

Key resistance: 1.383,1.389

Key support: 1.376,1.372

Generally speaking, USDCAD is likely to rebound in the short term. Investors should buy as it retreats during the day.