BoC Day in Canada

Later today, the Bank of Canada is expected to hold its benchmark rate at 0.25%.

Canada US

Later today, the Bank of Canada is expected to hold its benchmark rate at 0.25%. The BoC Monetary Policy Report will also be published. Canada's manufacturing sales for May will also be reported, expected at +9.0% on month.

From a technical point of view, on a daily chart, USD/CAD stands below a strong horizontal resistance at 1.3720 and is capped by its declining 50-day moving average (in blue). The daily RSI is reversing down below its neutrality area. Readers may therefore consider the potential for further weakness below horizontal resistance at 1.3720. The nearest support would be set at horizontal support at 1.3490 and a second one would be set at set at June bottom at 1.3300 in extension.

Source: TradingView, GAIN Capital

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