USD/CAD Price Analysis: Holds above 200-hour SMA pivotal point ahead of BoC

• USD/CAD meets with some fresh supply near 1.3400 mark on Wednesday.
• The downside remains cushioned ahead of BoC monetary policy decision.

The USD/CAD pair failed to capitalize on the overnight positive move and met with some fresh supply in the vicinity of the 1.3400 round-figure mark on Wednesday.

The recent pullback from nine-month tops has been finding some dip-buying near 200-hour SMA, which should now act as an important pivotal point for short-term traders.

The mentioned support is closely followed by the 1.3320-15 horizontal support and the 1.3300 mark, which if broken might be seen as a key trigger for bearish traders.

Meanwhile, technical indicators on hourly charts have just started drifting into the negative territory, albeit have still managed to hold with a bullish bias on the daily chart.

The set-up warrants some caution before placing any aggressive bets as investors look forward to the highly anticipated BoC monetary policy decision for a fresh directional impetus.

USD/CAD 1-hourly chart

Technical levels to watch