The Bank of Canada kept rates unchanged yesterday at 1.75% as widely expected by markets. USDCAD trading close to daily low at 1.3047 amid USD weakness across the board after Jerome Powell, Chair of the Board of Governors of the Federal Reserve System Remarks yesterday. The Loonie also gets a boost by the rally in crude oil today which trades 0.76% higher at $60.73.
Bears are in full control as the pair trading below all major daily moving averages. First support stands at 1.3041 the daily low and then at 1.3036 the YTD low from July 4th. Immediate resistance for the pair stands at 1.3079 the daily high from European 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.Don’t miss a beat! Follow us on Twitter.