The 100/200 hour MA comes in at 1.3056-586.
The USDCAD has moved higher after the data today and now prepares for the interest rate decision at 10 AM ET. The expectation is for no change in rates (remained steady at 1.75%). However, participants are looking for a shift to a little more dovish.
Technically,the low just before the release of the data moved down toward a swing area since January 10 at 1.30283 and 1.30341. Also in that area is the 50% retracement of the move up from the January low to the January high at 1.30302 (see green numbered circles in the chart above).
Through the decision today, a move below that area should solicit more selling momentum.
On the topside, earlier today the 100 and 200 hour moving average were both broken to the downside (they are near converged at 1.30586 and 1.30567 respectively). After the data today, the price moved up to a high price of 1.3055 - just below the lower MA level.
A move above each of those moving averages, would shift the bias more to the upside for the pair. On more upside momentum, the 1.30747 to 1.30788 area will be eyed. Prior to the break above today, traders have been using that area as a ceiling (going back to January 10). Move above, and traders will be eyeing the high for the day at 1.3091 (see red numbered circles). Above that is the high for the year at 1.3104 (from January 9).
The roadmap is set for the rate decision with the technical levels and targets defined. We will see what comes of the interest rate decision at 10 AM ET/1500 GMT and the press conference scheduled for 11:15 AM ET/1615 GMT.
