USDCAD Testing Bearish Channel Resistance Ahead of #BOC Wednesday
If the BOC comes off as less hawkish than traders expect (even if it still raises interest rates), USD/CAD could conclusively break above 1.3150, clearing the way for a continuation up toward the September high at 1.3250 or the July high near 1.3300 next. Meanwhile, a hawkish outlook from the BOC could keep the bearish channel intact and open the door for a drop back below 1.30 toward 1.2900 or 1.2800 in USD/CAD.
If the BOC comes off as less hawkish than traders expect (even if it still raises interest rates), USD/CAD could conclusively break above 1.3150, clearing the way for a continuation up toward the September high at 1.3250 or the July high near 1.3300 next. Meanwhile, a hawkish outlook from the BOC could keep the bearish channel intact and open the door for a drop back below 1.30 toward 1.2900 or 1.2800 in USD/CAD.