Key test for the bulls and bears
The USDCAD has moved lower on the less dovish comments from BOC Poloz. Earlier this week, BOC's Wilkins was a more dovish in the eyes of the market, and that helped to push the USDCAD higher.
Technically, the price has fallen back down to the 200 day MA and an old ceiling near that level at the 1.32698 to 1.32745. The level is so far holding but the price is not far from the level currently.
A move below would open up the downside for more probing, with the 100 hour moving average at 1.32525 (blue line) and the 200 hour moving average at 1.32474 (green line) as the next targets. Move below each would weaken the technical picture even more and dig more into the bullish move from the Wilkins' comments.
On the topside, watch the 1.3284 level. That was the initial high rate after breaking the 200 day moving average in yesterday's trade. A move back above that level will give the dip buyers against support a little bit of comfort (although potentially not out of the woods - there could be sellers on who willl lean against the earlier low for the day at 1.3295).
Key test for the bulls and bears at this area. Traders are looking for the next shove.
