Opinion on the pair USD/CAD. Waiting for speech of Stephen Poloz.

The pair USD/CAD moves in an upward short-term trend, the beginning of which was caused by the preservation of the Bank of Canada interest rate at the level of 1.0%. This decision of the Central Bank was caused by a slowdown in inflation, which in November was 1.4% against the September figure of 1.6%.

At the moment, the main pressure on the Canadian dollar is caused by the decline in oil prices. Today, the speech of the Chairman of the Bank of Canada, Poloz, is expected. In case of any of his predictions about further tightening of monetary policy, the Canadian dollar will be subject to considerable volatility.

Technical analysis: The pair USD/CAD enters the triangle, the support line of which is the lower limit of the ascending channel on H1, the resistance line is the upper limit of the downward channel on D1, and the more likely is the price reduction of the instrument. In case of price decrease and if it is fixed below the level of 1.2790, a further price reduction to the levels of 1.2720; 1.2670 is possible. In case of further growth and consolidation of the price above the level of 1.2890, one should expect the achievement of the levels 1.2960; 1.3000.

Fig. USD/CAD. The current price is $ 1.3450.

Alexander Sivtsov