The initial reaction to the Bank of Canada 50 basis point hike is for a move to the downside for the USDCAD .
The price moved from 1.3644 to a low of 1.3587 so far and is seeing a bounce. The current prices trading backup at 1.3616 and volatile up-and-down trading. The high bounce price reached to 1.36267.
On top side, traders will be watching the 1.36447 level. That was a high price from November 29. I moved back above that level could see additional buying on the selling disappointment.
On the downside, the 38.2% retracement of the move up from the low reached on Monday comes in at 1.35789. The low price today stalled about nine pips ahead of that target level. Should the price move below that level, the swing high going back to November 10 and the swing low yesterday comes in at 1.3569. Moving below those levels would have traders targeting 1.35427 midpoint of the move up from Monday's low and the rising 100 hour moving average 1.3528.