USD/CAD daily review

Jul 11, 2018

The main move on the USD/CAD on Wednesday occurred due to the Bank of Canada hiking their base interest rate. Namely, a hike from 1.25% to 1.50% caused a strengthening of the Canadian currency.

The event was covered on the bank’s live webinar platform, and the traders present caught an initial move of 50 base points that eventually extended into a 70 base point decline until the rate met with dominant support.

Namely, a support line drawn just before the data release coverage by Dukascopy Analytics turned out to be strong enough to support the currency exchange rate.

Jul 12, 2018

Note

Bulls managed to regain their lost positions on Wednesday after the pair initially crashed due to the fundamental event. The Bank of Canada hiked their interest rate from 1.25% to 1.50% and initially made the Canadian Dollar to strengthen against the US Dollar.
By the end of trading day, the USD/CAD currency pair has rallied 152 base points or 1.16%. Also, the rate breached all significant resistance. Namely, the 55-, 100-, and 200-hour SMAs and the combination of the weekly and the monthly pivot points respectfully.
Technical indicators favour bullish momentum to continue during the following trading session.