USDCAD tested 1.2850 after the great surge which started from 1.25. If this resistance will broke and the price holds after the BOC decision, up moves might continue to the upper line of the trend channel (currently at 1.3105). But the US CPI data from Friday and next week’s FOMC decisions should not be underestimated when entering and exiting positions. A hawkish FOMC may outweigh the BOC decisions when it comes to FX markets.
If the Bank of Canada will act as hawkish as expected, the pricing direction might turn to 1.25 again. The markets expect 3-4 rate hikes from the BOC in 2022.
