The Canadian Dollar Has Paused Ahead of the Bank Of Canada Rate Decision

• 6 Dec 2017

CAD/CHF

After a strong bullish move in recent sessions, the CAD appears to have lost its momentum. A rejection of the 0.778 price level coupled with an increase in selling pressure in yesterday’s trading, indicates that a trend reversal may be imminent. MACD has stalled below the zero line and RSI has paused just above the 50 support level. Declining volume indicates that buyers have lost steam however, there is no real drive from sellers to push prices lower. Fundamental factors later in the day may play a role in price action.

Impact event: Bank Of Canada Rate Decision and Statement at 17:00 GMT+2 will impact all CAD pairs. 

EUR/CAD

A sharp sell-off towards the end of last week’s trading has resulted in the EUR/CAD pair breaking the 20- period EMA and the 1.510 price level. The pair is also testing the 1.499 price level with clear indecision causing the pair to stall at the price 1.499 price level. A series of doji candles may indicate the build up to a momentum shift, which will likely be spurred by fundamentals.

USD/CAD

The USD/CAD has been defined by dollar weakness and may continue to bounce around in the trading range between the 1.262- 1.276 price levels. The break below the 20-period EMA; which has been acting as support for the last couple of months, could be significant in highlighting a longer-term bearish move for the pair. Momentum indicators are slightly bullish.

GBP/CAD

A break below the 1.71 price level has resulted in the GBP/CAD pair testing the 20-period EMA. Momentum indicators have flattened and declining volume suggests that there may not be enough conviction from sellers to drive price to the 1.67 price level.