• USD/CAD rose on Wednesday after the Bank of Canada cut its key policy rate by a large 50 basis points to 3.75%
• The currency's reaction was limited as the decision was widely expected. At GMT 15:58 US dollar was up 0.19% at 1.3840 to the Canadian dollar.
• The central bank, which hiked rates to a 20-year high to fight soaring prices, has now cut four times in a row since June. Inflation in September sank to 1.6%, below the 2% target.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3862(Daily high), any close above will push the pair towards 1.3875 (23.6%fib).
• Support is seen at 1.3816(5DMA) and break below could take the pair towards 1.3801 (50%fib).
Recommendation: Good to buy around 1.3820, with stop loss of 1.3750, and target price of 1.3880
