USD/CAD drops during Fed press conference

Note: This section contains information in English only.
Source: Dukascopy Bank SA


On Wednesday, at 18:00 GMT, the USD/CAD initially spiked up due to the US Federal Reserve Rate hike. However, at the following press conference the Chairman of the Federal Reserve Jerome Powell stated that the central bank is not considering 0.75% rate hikes, which caused an all out drop of the USD. On the USD/CAD charts it resulted in a decline tot he weekly S1 simple pivot point at 1.2732.

On Thursday morning, the rate declined further and found support in the 1.2718/1.2724 zone, which marks the April 29 low levels.

In the case that the US Dollar continues to recover against the Canadian Dollar, the currency rate might encounter resistance near the 1.2800 mark. The round exchange rate level's resistance was being strengthened by the weekly simple pivot point and the 50 and 200-hour simple moving averages.

On the other hand, a decline would have to pass below the 1.2718/1.2724 zone, before approaching the 1.2700 mark and the low and high level zone at 1.2675/1.2685.
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