- Loonie has declined drastically yesterday after BOC kept its interest rates on hold. The pair has broken major support of 1.3000 today morning and is currently trading around 1.29750.
- BOC has left overnight interest rate unchanged at 0.50% as widely expected. The central bank has kept its Q1 growth in line with April projections. But Q2 growth is expected to decline by 1.25 percentage points due to Alberta wild fires. BOC has mentioned that the impact of Alberta wild fires on economy to be temporary and is expected to rebound on Q3 on higher oil prices and positive US economy.
- So BOC is expected to keep interest rates on hold throughout this year.
- USD/CAD has made a high of 1.3187 and started to decline from that level. Yesterday the pair has broken major 55 day EMA 1.3024 and declined till 1.2732 at the time of writing.
- Short term bullishness can be seen above 1.3160 (100 day EMA). On the higher side resistance is around 1.3040 and break above targets 1.3080/1.3110/1.3150.
- Loonie immediate support is around 1.29700 (100 day 4 H EMA) and any break below targets 1.2910/1.2875 (21 day MA)/1.2830 (200 day 4H MA).
It is good to sell on rallies around 1.3040 with SL around 1.3110 for the TP of 1.2910/1.2840
