FxWirePro: USD/CAD trades lower after more dovish comment for BOC, good to sell on rallies
Canadian dollar recorded biggest one day rally in two months after more dovish comment from BOC Governor Poloz yesterday. Bank of Canada has kept its interest rates unchanged at 1.25% yesterday. The central bank said tha…
Canadian dollar recorded biggest one day rally in two months after more dovish comment from BOC Governor Poloz yesterday. Bank of Canada has kept its interest rates unchanged at 1.25% yesterday. The central bank said that inflation is near to its 2% target and is expected to rise in coming months on account of rise in gasoline price. The recent Canadian economic data shows that economy is expected to grow at 2% in the first half of this year. The pair declined almost 200 pips yesterday and hits low of 1.28360 and is currently trading around 1.28511.
WTI Crude oil prices has shown a minor jump till $68.63 and started to show minor decline after API inventory data. It is currently trading around $67.68.
Technically near term resistance is around 1.29250 and any convincing break above targets 1.2965/1.300/1.3050.Major bullish continuation only above 1.3125.
On the lower side, near term support is around 1.2800 and any convincing break below will drag the pair down till 1.2740/1.2700.
It is good to sell on rallies around 1.2900-05 with SL around 1.2965 for the TP of 1.2800/1.2745.
