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USDCAD keeps rebound from 100-day EMA ahead of BOC

Long
FX:USDCAD   U.S. Dollar / Canadian Dollar
US dollar bulls dominate markets following the return of the American and Canadian traders on Tuesday, portraying the heaviest daily gains of the greenback in three weeks. The same portrayed the USDCAD bounce off 100-day EMA , keeping the recovery moves ahead of the key Bank of Canada ( BOC ) monetary policy meeting. Given the firmer RSI and fundamental scopes for the USD’s further upside, the pair buyers seem to aim for the late August tops surrounding 1.2710 by the press time. Following that, July’s high of 1.2806 and the yearly peak surrounding 1.2950 should lure the bulls.

On the contrary, a daily closing below 100-day EMA surrounding the 1.2500 threshold needs validation from 50% Fibonacci retracement of June-August upside and late July’s bottom, respectively near 1.2475 and 1.2420, to please the USDCAD bears. If the pair sellers keep reins below 1.2420, the quote becomes vulnerable to drop towards the June 23 trough close to 1.2250. Overall, the Bank of Canada ( BOC ) is likely to repeat its hawkish bias and provide hints of tapering. However, any disappointment will be received with firmer USD to entertain the bulls.