The Bank of Canada raised rates by 25 basis points to 4.75% from 4.5% ending their "conditional pause" period. The USDCAD moved lower after the report to a level of 1.33199. That took the price below the 38.2% retracement of the move up from the October 2021 low at 1.33314 and into a swing area between 1.3298 and 1.33203. The price is currently trading back up at 1.3349 as I type after holding near support.
The price just before the announcement was trading at 1.3384.
Looking at the daily chart, the red box is been where most of the trading activity has taken place going back to September 2022. Yes, there were moves above the high of that swing area at 1.37018. There have been modest moves below the lower end of 1.3298. However, most of the price action has been within that red box area. Last week, the price fell below the 100/200-day moving averages which are near converged at 1.3515 (blue and green lines in the chart above).
Looking at the hourly chart below, the price fell below a lower trendline on the news. That trendline cuts across at 1.33742. A swing low from May 11 came in at 1.33618. Watch those levels for resistance on a rebound. Stay below keeps the sellers in play and in control. move above and there's trouble technically, and we could see further upside probing.
