BOC Keeps Interest Rate 5.00%, What's Happening On USD/CAD Chart?

<p>&nbsp;The Bank of Canada (BOC) at the policy meeting that took place in the New York session yesterday has announced that the interest rate will be maintained at 5.00%.</p><p><br /></p><p>In a follow-up statement, the BOC reiterated its focus on current inflationary pressures and would be prepared to raise interest rates further if needed.</p><p><br /></p><p>The Canadian dollar showed no significant movement reaction following the rate decision announced yesterday.</p><p><br /></p><p>Investors are also monitoring the development of the global crude oil market which affects the Canadian dollar following reports that Saudi Arabia and Russia will continue to cut oil production.</p><p><br /></p><p>Canada's jobs data report on Friday will be watched to see a clearer direction for the Canadian dollar in the market.</p><p><br /></p><p>On the chart of the USD/CAD currency pair, the price moved relatively flat on Wednesday yesterday, hovering below the 1.36700 zone.</p><p><br /></p><p>The 1.36700 level reached and seen as resistance for the current price is the latest 6-month high.</p><p><br /></p><p>The price that remains moving above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/CAD chart is still a bullish signal, but the momentum of the price increase is slowing making investors cautious.</p><p><br /></p><p><br /></p><p>Continuing trading today (Thursday), the price is seen trying to make a drop below the MA50 support level, but the price reaction is still being observed.</p><p><br /></p><p>A clear drop in price can give an indication of the direction of price movement starting to change and a lower drop can be expected.</p><p><br /></p><p>The 1.35000 zone is seen as a focus zone that will be targeted for the bearish price movement exhibited hereafter.</p><p><br /></p><p>However, if the price rebounds again, it is likely that the high level reached yesterday will be overcome.</p><p><br /></p><p>The price is expected to continue its climb with a target for the price to reach up to the 1.38000 level.</p>