Directed focus on the results of the central bank of Canada's policy meeting in the New York session yesterday saw an impact on the movement of the Loonie currency.
The Bank of Canada (BOC) as expected has lowered interest rates by 25 basis points to 4.50%.
This is the second rate cut after it was made at the June meeting when it started easing policy faster than most other major central banks.
Markets have been anticipating this situation when assessing early indications on previously published Canadian economic data that showed risks are on the rise.
The Canadian dollar fell to a 14-week low against the US dollar with the downward trend continuing today.
Examining the movements on the chart of the USD/CAD currency pair, the price has shown an upward pattern which is seen to have successfully broken through the resistance level at 1.38000 yesterday.
The bullish trend movement was successfully maintained since last week again after the price increase that started from the support level of 1.36000.
This shows that more than 200 pips of price increase has been successfully achieved in this 2-week trading period.
The trend remains bullish with price movement continuing to be above the Moving Average 50 (MA50) support line on the 1-hour time frame on the USD/CAD chart.
The rise continues today and as of the opening of the European session this afternoon, the price has approached the 1.38300 level.
The continued price increase is seen to be heading towards the 1.38450 level to test the peak reached last April.
Exceeding that level will record the highest price level for this year 2024 before then targeting the 1.39000 zone which was an important resistance in November trading last year.
Meanwhile, if the price starts to make a decline below the 1.38000 level again, this will signal an early warning for the beginning of the price fall.
After a clear signal of a bearish trend change, the price is at risk of plunging to around 1.37000 again.
