USD/CAD Price Analysis: Grinds higher around 1.2400, BOC Interest Rate Decision eyed

• USD/CAD remains sidelined around weekly top as bulls brace for BOC.
• MACD, RSI joins sustained break of 10-DMA, 61.8% Fibonacci retracement to keep buyers hopeful.
• July’s low acts as immediate hurdle ahead of five-week-old resistance line.
• Bank of Canada Rate Decision Preview: Inflation prospects headline policy review

USD/CAD stays on the way to the second consecutive weekly run-up following its successful break of 10-DMA and 61.8% Fibonacci retracement (Fibo.) of June-August upside. That said, the quote edges higher around 1.2390 by the press time of early Wednesday morning in Asia.

With the MACD line teasing bulls and the RSI also gradually recovering, the pair buyers can extend the latest rebound towards July’s low surrounding 1.2425.

However, any further upside will be questioned by a descending resistance line from September 20, near 1.2460, 50% Fibo. level of 1.2478 and 200-SMA close to 1.2500.

Alternatively, a convergence of the 10-DMA and 61.8% Fibo. around 1.2368 offers immediate support to the Loonie pair ahead of the monthly bottom near 1.2290, also the lowest since late June.

In a case where the Bank of Canada (BOC) propels the CAD, dragging the quote back below 1.2290, June 23 low close to 1.2250 and the mid-May’s top near 1.2200 will be in focus ahead of the yearly bottom of 1.2007.

USD/CAD: Daily chart

Trend: Further recovery expected