Daily Forex Update: USD/CAD

In response to the upcoming Bank of Canada (BOC) decision on rates, which will be announced Tuesday morning at 9:00am EST, the USD/CAD has begun to consolidate across the intraday time frames. On the short-term 15-minute chart, an Ascending Triangle pattern breakdown recently formed and triggered with a move lower through 1.0543 (E). While this Autochartist Initial Movement/Momentum (AIM) entry has triggered a short-sell due to weakness through uptrend line support, the bearish sentiment accompanying the breakdown is very low. The momentum that accompanied the breakdown is measured by Autochartist's Breakout reading, and at just a single bar this reading suggests that the break of support did not increase bearishness within the market. This is most likely due to traders and investors taking a "wait and see" attitude towards tomorrow's statement from the BOC, and not wanting to move the market too far ahead of the release.