The pair is getting support from expectations of the key event – the upcoming Fed meeting, which will take place next week. It is highly likely that the US regulator will raise the rate by as much as 0.50% to 1.00%. This move will noticeably undermine the position of the Canadian dollar even despite the resumption of growth in oil prices.
Technical outlook:
The price is holding above the middle line of the Bollinger Bands indicator and above SMA 5 and SMA 14. The relative strength index (RSI) shows that the asset has been overbought. The Stochastic indicator signals a possible downward reversal of the pair.
Daily forecast:
Consolidation above 1.2825 may open the way towards a higher target at 1.2900.
