Falls below 100 hour MA. Traders will be eyeing the level now as close resistance
The BOC kept rates unchanged and to me at least said that the assessment is neither hot nor cold. The USDCAD has pushed to the downside as the initial reaction. In doing so the price went from the 200 hour MA (green line in the chart below) to and through the blue line (the 100 hour MA at 1.3372.
Is the decision and statement all that surprising? Not really. So the market will likely shift fundamental focus to the oil price (the currency has been more in sync of late). The Crude oil futures are trading at $37.25 area currently. The high was 37.42, the low was down at 36.22. Yesterday, the price extended to $38.37 which was within a penny or so of the high price for the year reached on January 3rd. Needless to say, a key level.
Traders will also continue to pay attention to the technicals as they can help define ranges and of course risk in an up and down market.
The 100 hour MA (and trend line that slashes across near that same MA level) is a central level. The price is looking to stay below that level.
The 200 hour MA above, did a good job today in finding sellers. So that will be a key level should the price fail and move back higher.
ON the downside is the ubiquitous 200 day MA at 1.3291 remains a key downside target. The price traded below that MA level on Monday. That was the first time since September 2014. A break - and staying below - will be more bearish for the pair. - but expect a big fight.
