The USD/CAD saw a sharp decline during the U.S trading session after the announcement of its Bank Rate Statement making the Canadian dollar strong against all its counterparts in the markets. Intraday bias for the USD/CAD remains on the downside as fresh crosses of the exponential moving averages 21 and 55 was witnessed in the 1hour and 4hours time frame.
Furthermore, oscillators such as Stochastic, RSI and MACD are also signaling a fresh bearish run is about to commence in the pair on both time-frames respectively. More selling is expected to 1.09685(weekly S2) as price formed a bullish rejection pattern on 1.10868(weekly central pivot).
However key economic indicators to watch out for tomorrow is the Canadian Ivey PMI. This will determine whether more strength would be seen in the pair as economist expects an improving data to be released. PMI’s generally are business leading indicators of a country which determines whether there is an expansion or contraction in the economy thereby causing weakness or strength in an economy.
Another major key economic indicator is the Canadian Employment Change and Unemployment Rate which is scheduled on Friday March 7, 2014.