The post Bulls take a breather near 1.3800 ahead of BoC rate decision appeared on BitcoinEthereumNews.com.

USD/CAD ticks higher amid an extension of the recent USD rally to a nearly three-month top. Bets for a larger BoC rate cut, softer Oil prices undermine the Loonie and also lend support. The technical setup favors bullish traders and supports prospects for further near-term gains. The USD/CAD pair attracts some dip-buyers following the previous day’s modest slide and sticks to its positive bias around the 1.3825 region through the first half of the European session on Wednesday. Spot prices remain within the striking distance of the highest level since August 6 touched earlier this week as traders keenly await the Bank of Canada (BoC) policy decision before positioning for the next leg of a directional move.  Heading into the key central bank event risk, the recent US Dollar (USD) upswing to its highest level since early August, led by bets for a less aggressive policy easing by the Federal Reserve (Fed), continues to act as a tailwind for the USD/CAD pair. Apart from this, a downtick in Crude Oil prices is seen undermining the commodity-linked Loonie and offering additional support to the currency pair amid expectations for a larger BoC rate cut later today.  From a technical perspective, this week’s breakout and a daily close above the 1.3800 mark could be seen as a fresh trigger for bullish traders. This, along with the fact that oscillators on the daily chart are holding comfortably in positive territory, suggests that the path of least resistance for the USD/CAD pair is to the upside. That said, it will still be prudent to wait for a move beyond the monthly high, around the 1.3850 area, before positioning for further gains. The subsequent move-up has the potential to lift spot prices beyond the 1.3875 intermediate hurdle, towards reclaiming the 1.3900 mark. The USD/CAD pair…

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Filed under: News - @ October 23, 2024 10:25 am