The USDCAD currency pair continues to experience market dynamics that favor buyers, marking a week characterized by fluctuating trading activity. This week, the pair ascended to its highest level since early August. As the price peaked, the USDCAD entered a critical swing zone traced back to late July and early August, ranging from 1.38337 to 1.38475. Sellers leveraged this zone to steer the price downward.

However, the subsequent decline found solid support, particularly aligned with the broken 61.8% Fibonacci retracement of the August range, positioned at 1.37449. This support level proved pivotal as the price surged back toward the median point between the week's high and low. Currently, price action is respecting a swing zone between 1.3786 and 1.3792, bolstered by the 100-hour moving average at approximately 1.37864. This convergence of technical indicators underscores the significance of these levels in the near term.

Should the price dip below 1.3786, we might anticipate a shift in sentiment, driving buyers to become sellers, targeting the 200-hour moving average at 1.3752 and considering the weekly low at 1.37449 as subsequent focal points. Absent these events, buyers maintain command of the market landscape. Looking ahead, the Bank of Canada's upcoming meeting is anticipated to be pivotal, with prevailing expectations of a 50 basis point interest rate cut.

This consensus stems from a poll where 19 out of 29 economists forecasted a 50 basis point reduction, while 10 projected a more conservative 25 basis point adjustment. Therefore, some divergence in economic expectations exists, adding a layer of uncertainty that will keep traders vigilant as the central bank's decision approaches.