FxWirePro: USD/CAD heads deeper into bear territory after Bank of Canada rate decision
The USD/CAD pair declined on Wednesday as Canadian dollar gained strength across the board after Bank of Canada held interest rate steady at 0.50 percent and offered a tentative nod to recent signals of strength in the e…
The USD/CAD pair declined on Wednesday as Canadian dollar gained strength across the board after Bank of Canada held interest rate steady at 0.50 percent and offered a tentative nod to recent signals of strength in the economy.
Bank of Canada said recent economic growth has been faster than expected. Still, it cautioned that it was too soon to conclude the Canadian economy was on a sustainable growth path.
The bank has held rates steady since cutting twice in 2015, and the low rates has been blamed for helping inflate the housing market, particularly in Toronto.
The currency pair is trading around 1.3291 levels and it is set to decline further towards 1.3250 and 1.3220 in the short term.
To the upside, the strong resistance can be seen at 1.3356, a break above will take the pair towards next resistance level at 1.3400.
To the downside immediate support can be seen at 1.3286 levels, a break below will open the door towards next level at 1.3255.
