Canadian Dollar Price Forecast: USD/CAD remains rangebound after BoC rate decision

Canadian Dollar Outlook:

• USD/CAD fell to critical support as sentiment remained mixed
• BoC (Bank of Canada) holds rates steady at 0.25, FOMC now at the forefront of risk sentiment
• USD/CAD remains in a confluent zone

The Canadian Dollar (USD/CAD) currently remains steady against major currency pairs after the bank of Canada rate decision came in line with expectations, holding rates steady at 0.25%

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With commodity prices on the rise, the Canadian dollar has managed to regain confidence against the greenback, finding support at the 1.23 mark.

However, in anticipation of the FOMC meeting minutes expected to take place next week, USD/CAD may continue to trade within a well-defined range, at least for now.

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USD/CAD Technical Analysis

After a strong downtrend from the September high, USD/CAD prices have recently rebounded off of the October low at 1.200, allowing bulls to drive prices higher, towards the upper bound of the descending trendline, currently holding as resistance for the imminent move.

With prices currently testing the key psychological level of 1.240, the MACD (moving average convergence/divergence) remains below the zero line on the daily time-frame, a possible indication that bearish continuation may be probable if USD bulls can regain control of the systemic, prominent trend.

USD/CAD Daily Chart

Chart prepared by Tammy Da Costa using TradingView

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707