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Hugo in HTO Trading,

USDCAD: Potential double top

On Wednesday following the Fed’s monetary policy meeting, as expected, Fed decided to keep the rate at its record low of 0.25% and removed the word “patient” from its language. The Fed said it sees a slower and more gradual rate hikes as long as the job market keeps improving.

Today on the economic agenda we the consumer price index in February from Canada that is expected to stay unchanged at 1% and the retail sales is estimated to rise from -2.0% to -0.7% showing a positive economic growth.

The USDCAD initially fell but found enough buying pressure at the 50-day moving average to turn things back around and closed near the high of the day, but below the 10-day moving average. Potential double top pattern in the making, a break below the neckline can create major move to the downside.

On a break below the neckline at 1.2392 we may expect a downward move to 1.2046 (scenario 1).