Loonie declined sharply and lost more than 150 pips after more dovish Fed. Fed has kept its interest rates unchanged and pledges ‘patience’ stance on further hike. According to CME Fed watch tool shows that probability of Fed to keep rates unchanged is 98.7% for 20th Mar 20 2019 ,98.7% for May 1st 2019 and 95.4% for 19th Jun 2019 Fed meeting. The pair hits low of 1.31185 and is currently trading around 1.31405.
On the higher side near term resistance is around 1.3160 and any break above targets 1.3197 (100- day MA)/1.3255/1.3300.
The near term support is around 1.3110 (200- day MA) and any violation below targets 1.3070 (300-day EMA)/1.3025.
It is good to sell on rallies around 1.3160 with SL around 1.3200 for the TP of 1.3070.
