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FxWirePro: USD/CAD maintains bullish bias with focus on 1.4700 levels

Canadian dollar has gathered some momentum against US dollar after Bank of Canada left its interest rate unchanged at 0.50 %.The market has discounted a rate cut, however Central Bank opined for patience because of expec…

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Canadian dollar has gathered some momentum against US dollar  after Bank of Canada left its interest rate unchanged at 0.50 %.The market has discounted a rate cut, however Central Bank opined for patience because of expected help from weak currency, fiscal stimulus and falling oil prices. 

  • Currently the pair is currently trading at 1.4563 levels, it is set to consolidate and rebound to towards 1.4650 and 1.4750 levels in the short term as the continuing decline in oil prices is set to weigh on the Canadian dollar.
     
  • Immediate support can be seen at 1.4520, break below this level will expose the pair to next support level at 1.4420.

     
  • Major resistance can be seen at 1.4631, break above this level will expose it towards 1.4700 levels.

    Recommendation: Go long around 1.4540 with targets at 1.4650, 1.4750 SL 1.4440.

    Resistance Levels

    R1: 1.4631 (38.2% Retracement level)

    R2: 1.4631 (Daily high)

    R3: 1.3783 (23.6% Retracement level)

    Support Levels

    S1: 1.4520 (50% Retracement level)

    S2: 1.4420 (61.8% Retracement level)

    S3: 1.4333 (Jan 15th lows)

 

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