The pair USD/CAD has been growing for the fifth trading session in a row and has reached its 2-month maximum at 1.2664. The rate of the pair is supported by two factors: the passing of draft budget for 2018 by the US Senate and high possibility of the Bank of Canada leaving the interest rate unchanged on the level of 1%. Recent weak macroeconomic statistics on and retail sales in Canada only increases the chances of this scenario.
The decision on the interest rate will be released by the Bank of Canada at 16:00 (GMT+2) followed by a follow-up statement. If the document contains pessimistic comments of the regulator regarding the prospects of the national economy, a new wave of sales will start in CAD, and the rate of the pair will get to new local maximums. Otherwise more optimistic comments of the regulator will cause the correction of the rate to 1.2570.
Technical indicators show the preservation of growth potential: are directed upwards, the volumes of histogram are growing in the positive zone. A breakout and consolidation of the rate above 1.2664 will be a signal for the continuation of growth.
Support levels: 1.2612, 1.2570, 1.2512.
Resistance levels: 1.2664, 1.2710, 1.2778.
Buy positions may be opened above the level of 1.2664 with targets around 1.2710-1.2778 and stop-loss at 1.2634.
Sell positions may be opened below the level of 1.2612 with targets at 1.2570-1.2512 and stop-loss at 1.2642.