The Bank of Canada (BOC) at the policy meeting that took place in the New York session yesterday has announced that the interest rate will be maintained at 5.00%.
In a follow-up statement, the BOC reiterated its focus on current inflationary pressures and would be prepared to raise interest rates further if needed.
The Canadian dollar showed no significant movement reaction following the rate decision announced yesterday.
Investors are also monitoring the development of the global crude oil market which affects the Canadian dollar following reports that Saudi Arabia and Russia will continue to cut oil production.
Canada's jobs data report on Friday will be watched to see a clearer direction for the Canadian dollar in the market.
On the chart of the USD/CAD currency pair, the price moved relatively flat on Wednesday yesterday, hovering below the 1.36700 zone.
The 1.36700 level reached and seen as resistance for the current price is the latest 6-month high.
The price that remains moving above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart is still a bullish signal, but the momentum of the price increase is slowing making investors cautious.
Continuing trading today (Thursday), the price is seen trying to make a drop below the MA50 support level, but the price reaction is still being observed.
A clear drop in price can give an indication of the direction of price movement starting to change and a lower drop can be expected.
The 1.35000 zone is seen as a focus zone that will be targeted for the bearish price movement exhibited hereafter.
However, if the price rebounds again, it is likely that the high level reached yesterday will be overcome.
The price is expected to continue its climb with a target for the price to reach up to the 1.38000 level.
