- USD/CAD loses ground near 1.3583 ahead of the BoC rate decision.
- The pair maintains a bullish outlook unchanged as the pair is above the key EMA; RSI stands in bullish territory.
- The immediate resistance level will emerge at 1.3600; 1.3570 acts as an initial support level for the pair.
The USD/CAD pair remains capped under the 1.3600 barrier during the early European session on Wednesday. Market players await the Bank of Canada (BoC) interest rate decision and press conference later in the day. The Canadian central bank is widely expected to hold its key interest rate at 5.0% at its March meeting, and financial markets anticipate the first rate cut to come in around June. USD/CAD currently trades near 1.3583, down 0.08% on the day.
According to the four-hour chart, USD/CAD keeps the bullish vibe unchanged as the pair is above 100-period Exponential Moving Averages (EMA). Additionally, the Relative Strength Index (RSI) stands in bullish territory above the 50.0 midlines, supporting the buyer for the time being.
On the bright side, the immediate resistance level for USD/CAD will emerge near a high of February 6 and a psychological mark at 1.3600. The next hurdle is seen near a high of December 12 at 1.3618, en route to a high of November 27 at 1.3711.
On the flip side, the confluence of the lower limit of the Bollinger Band and the 100-period EMA at 1.3570 acts as an initial support level for the pair. A bearish break below the latter will see a drop to a low of March 4 at 1.3545, followed by a low of February 26 at 1.3500.
USD/CAD four-hour chart
(This story was corrected on March 6 at 09:57 GMT to say, in the headline and the first paragraph, that the USD/CAD pair remains capped under 1.3600, not 1.3500.)
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