The Bank of Canada interest rate decision will be announced at 10 AM ET. Adam has a preview that you can read here.
It is my job to show the technicals that are in play and looking at the price action, there is some reluctance to get too bullish or too bearish technically ahead of that decision. Traders are waiting for the next shove.
More specifically, technically the upside is being limited by the 100-day moving average at 1.3573 and the falling 200-hour moving average at at 1.3577.
Conversely, on the downside, the 200-day moving average at 1.35156 – although broken on Friday and on Monday – reestablished support against that moving average (also on Monday) after breaking back above the level .
Those levels will be barometers for traders through the rate decision.
On more upside momentum, the 38.2% retracement of the move down from the November high comes in at 1.36224 and will be another key target to get to and through if the buyers are to take more control. On the downside, break below the 200-day moving average and traders will next look toward the low from Monday at 1.3479. At that point, the price will be trading at the lowest level since the end of September. It also will be moving away from the 50% midpoint of the 2023 trading range at 1.3495.
This article was written by Greg Michalowski at www.forexlive.com. Source