The decision of the central bank of Canada meeting in the New York session yesterday has affected the price movement on the chart of the USD/CAD currency pair.
The Bank of Canada (BOC) has confirmed that no interest rate hike will be implemented at the latest policy meeting after being informed previously.
This made the BOC the first major central bank to halt interest rate hikes after being the first to start aggressive policy tightening earlier.
Signals for a shift to looser policy pushed the Canadian dollar lower.
Therefore, the price on the USD/CAD chart is seen to continue the rising pattern on Wednesday trading yesterday.
However, the upward momentum was seen to be slower than the surge that had been displayed on Tuesday as the market reacted early to Federal Reserve (Fed) Chairman Jerome Powell's hawkish signal for monetary policy tightening.
On the USD/CAD chart, prices have made gains reaching the target level at 1.38000 as the rally continued yesterday.
Continuing trading today (Thursday), the price remains hovering slowly at the 1.38000 level with the expectation that the rise will continue.
The price movement that is still above the Moving Average 50 (MA50) support level on the 1-hour time frame on the USD/CAD chart is also still signaling for bullish movement.
The price increase if continued is seen to test the zone around 1.39000 before continuing to climb higher towards the level of 1.4000 or 1.41000 to hunt for the latest 5-month record high.
However, if the price returns to display a declining pattern again, a drop below the MA50 support will be evaluated as an early indication of a change in price direction.
A lower decline is seen to be heading towards the RBS (resistance become support) zone at 1.36600 before signaling further price movement.
Market focus will shift to Friday's Canadian jobs and US NFP data reports which will impact the movement of both the greenback and the Loonie.
