The Bank of Canada rates by 25 basis points yesterday to 4.5%. It was the second consecutive meeting that the central bank rates.
The price of the USDCAD was trading within a key topside swing area between 1.3784 and 1.3803. That topside swing area formed the ceiling of an up-and-down trading range going back to April.
Although price action soon after the rate decision fluctuated up-and-down within a narrow, the buyers ultimately came in and pushed the price through the topside level at 1.3803. Buyers entered and pushed toward the 2024 highs.
That push ultimately moved to and through the high price from 2024 at 1.38448. However, the high price could only reach 1.3848 before rotating to the downside.
The move lower in the North American session today ended up extending back to the old swing area where buyers came in. What was once resistance, is now support.
What next?
In the above video, I outline what traders will look for from a technical perspective and explain why.
This article was written by Greg Michalowski at www.forexlive.com.
