BOC Determined to Continue 'Hike Rates', This Happened on the USD/CAD Chart!

<p>&nbsp;After the inflation data of the United States (US) became the focus at the beginning of the New York session yesterday, the market also watched the results of the policy meeting of the central bank of Canada.</p><p><br /></p><p>The following two currencies receive different movement effects on the results of the published readings.</p><p><br /></p><p>The US dollar has experienced a significant decline following the US consumer price index (CPI) recorded a figure that fell to 3.0% lower than forecast and is getting closer to the central bank's 2% target level.</p><p><br /></p><p>While the Canadian dollar took advantage of the opportunity to strengthen supported by a 25 basis point interest rate hike by the Bank of Canada (BOC).</p><p><br /></p><p>Governor Tiff Macklem has signaled that rate hikes will continue after this, adding to the potential for the Loonie to continue strengthening in the market.</p><p><br /></p><p>The reaction on the USD/CAD chart in the New York session yesterday saw a clear direction with the price movement continuing to decline to lower levels.</p><p><br /></p><p>The price plunged below the 1.32000 level to reach a level around 1.31430 which became the lowest level in the latest 2 weeks.</p><p><br /></p><p>But the price is seen to bounce back to the level of 1.32000 at the end of trading at the end of the New York session.</p><p><br /></p><p><br /></p><p>Slow price movements below 1.32000 continued trading in the Asian and European sessions today (Thursday).</p><p><br /></p><p>The price has the potential to continue the decline lower past the level reached yesterday towards the 1.31000 support zone.</p><p><br /></p><p>A break into that zone will record the price's latest low for a 10-month trading period.</p><p><br /></p><p>On the other hand, if the price bounces back past the 1.32000 level, the MA50 barrier will try to be tested and surpassed before signaling a bullish move again.</p><p><br /></p><p>A further move higher could be targeted towards around 1.33000 which was the price resistance level at the beginning of the week.</p>