USD/CAD has been in a bearish run since it rejected the channel resistance on Monday. Today is a very important day for CAD as recently the Bank of Canada released its rate statement which showed that the overnight rate was unchanged at 0.50%. Along with it, the BOC's Press Conference is going to held soon where bank's Governor and Senior Deputy Governor are going to speak about the monetary policy, interest rate decisions, overall economic outlook and inflation. A great deal of volatility is expected to hit the market as the conference goes on. On the other hand, President Trump commented on the upcoming policies which increased the market's uncertainty about further gains of USD. Additionally, the Crude Oil Inventories report was also negative at -2.2M versus the expected decrease of 0.7M. If the BOC's press conference goes well today, we might see the loonie gaining solid ground against the greenback in future.
Now let us look at the technical view. The price has moved quite impulsively after rejecting the channel resistance. The bearish pressure is still quite intact. Currently, the price is heading towards the recent support level at 1.3210, a breaks below it with a daily close will push the price further downward towards lower support at 1.3000. On the other hand, if the price rejects the support level of 1.3210, then we will be looking forward to buy on a short-term basis towards the resistance area of 1.3370 . As the pair is inside a volatile structure, a daily close would only be safer to predict the upcoming moves in this pair.
