As Macklem gets underway, the bullish bias in the USDCAD has been compromised

The USDCAD attempted to break above the critical “red box” resistance area, previously identified as a key zone to clear and sustain. While the pair briefly surpassed the upper limit of 1.4466 ahead of the rate decision, it only reached 1.4464 before reversing downward.

Early comments from Tiff Macklem have bolstered CAD strength, contributing to the downside pressure. Technically, the price has fallen back below the swing area between 1.44487 and 1.4466, indicating that a sustained move above this zone is required to shift the bias back to the upside.

In the absence of such a move, the short-term bias remains tilted downward. Buyers had an opportunity but failed to capitalize. Key levels to watch include yesterday’s high at 1.4419 as the next upside target. A move below that level would turn attention to the 100-hour and 200-hour moving averages, which are clustered between 1.43798 and 1.43849.

This article was written by Greg Michalowski at www.forexlive.com.