FxWirePro: USD/CAD runs out of steam but maintains bullish outlook
Canadian dollar has gathered some momentum against US dollar after Bank of Canada left its interest rate unchanged at 0.50 %.The market had discounted a rate cut however, the central bank said exports continued to disapp…
Canadian dollar has gathered some momentum against US dollar after Bank of Canada left its interest rate unchanged at 0.50 %.The market had discounted a rate cut however, the central bank said exports continued to disappoint and acknowledging it may have underestimated structural challenges facing businesses.
Currently, the pair is trading at 1.2960 levels, it is set to consolidate and rebound to towards 1.3068 in the short term as the continuing decline in oil prices is set to weigh on the Canadian dollar.
The immediate support can be seen at 1.2950, a break below this level will expose the pair to next support level at 1.2859.
Major resistance can be seen at 1.3068, break above this level will expose it towards 1.3140 levels.
