The US dollar currency is failing to form a clear near-term trend against the Canadian dollar after the Bank of Canada failed to act on rates during yesterday’s policy meeting. From a technical perspective, a break from the 1.2600 to 1.2700 price range is needed to prompt the next directional move. The overall trend remains bearish so the chances of a downside break is therefore higher.
The USDCAD pair is only bullish while trading above the 1.2700 level, key resistance is found at the 1.2740 and the 1.2840 levels.
If the USDCAD pair trades below the 1.2700 level, sellers may test the 1.2610 and 1.2550 levels.