The Bank of Canada kept rates unchanged earlier this week at 1.75% as widely expected by markets. USDCAD hit fresh 9 month lows at 1.3017 amid USD weakness across the board as markets discount a 25 basis point cut by FED at the end of the month policy meeting. The Loonie also gets a boost by the rally in crude oil the last days which now trades 0.10% higher at $60.45.
Bears are in full control as the pair trading below all major daily moving averages. First support stands at 1.3017 the daily low and then at 1.30 round figure. Immediate resistance for the pair stands at 1.3069 the daily high from Asian session, while a break above might trigger some aggressive buying, sending the pair to the next resistance at 1.3195 the high from June 26th. The pair needs to make a convincing rebound above 1.31 otherwise the sellers will make an attempt for new yearly lows.
USDCAD traders will focus in the US PPI and core PPI which will be released at 12:30GMT for the next trading impulse.Don’t miss a beat! Follow us on Twitter.