On Wednesday, USD / CAD is showing flat dynamics, consolidating around 1.2600 after yesterday’s upward impulse.
On the fundamental side, there are no reasons for the strengthening of the US dollar, except for periodic bursts of strengthening in Treasury yields.
A meeting of the Bank of Canada on the interest rate will take place today and a press conference of the heads of the regulator will be held. No significant changes in monetary policy are expected, but investors will be interested in the comments of the head of the Central Bank.
A little earlier than the results of the Central Bank meeting, the March report on consumer inflation in Canada will be released. According to analysts’ forecasts, the indicator will accelerate from 1.2% to 1.4%.
Bollinger Bands indicator on the Daily chart remains flat.
The MACD indicator begins to cross the zero line upwards and will soon move into the positive area. MACD is holding a buy signal.
Stochastic rises almost vertically, approaching the 80% level ever closer.
Technical indicators suggest the development of an upward movement.
After the breakdown above the level of 1.2650, open long positions with a take profit of 1.2746. Set your stop loss at 1.2600.
A signal to enter sells will be a breakdown of the 1.2600 support. The target level is 1.2500. Stop loss is set at 1.2650.