The pair is recovering from a drop ahead of the Bank of Canada’s monetary policy meeting and strong demand for risky assets, the reason for which was the Joe Biden’s inaugural rally. But today, if the demand for stocks falls due to profit-taking, and oil prices stop rising, expect a local rise of the US dollar.
Technical side:
The price is located below the middle Bollinger band, below SMA 5 and SMA 14. RSI is moving up from the oversold zone. Stoch are still there as well and are uninformative.
USDCAD rate online: monitor the price movement in real time.
Trading recommendations:
If the pair holds above 1.2625, it may continue to rise towards 1.2785.