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A Little Slide in USDCAD But Still Trading Within Consolidation Triangle

USDCAD declined as Bank of Canada announced that it is maintaining its key interest rate unchanged at 1%. The Bank rate is 1.25% and the deposit rate is .75%. The Bank still expects the excess capacity in the economy to be absorbed during the next two years and gave a neutral outlook with respect to the next change in the policy rate. New upbeat data on the economy will only give some idea about timing and direction of next policy rate change.

USDCAD : Hourly Chart

On the hourly chart, the pair declined immediately after the release but found support from the previous resistance at 1.0875. It is now testing the resistance at 1.0889 which previously acted as support for the pair. 

USDCAD : 4 Hour Chart

However on the 4 hour chart, the pair seems like consolidating within a symmetrical triangle and might show a bog move once it reaches the apex. A break below the rising trend line will bring some bearishness on the pair whereas a breakout above the falling trend line will signal an uptrend continuation. The immediate resistance and support after the breakout or breakdown are at 1.0935 and 1.0859 respectively.