FxWirePro: USDCAD trades lower on hawkish hold by BOC, good to sell on rallies
USDCAD trades lower and lost more than 140 pips on hawkish hold by BOC. The central bank has kept its rates unchanged at 1.75% as expected and comments are hawkish compared to previous Oct policy. They are more upbeat on the Canadian economy despite ongoing trade war uncertainties. The pair hits an intraday low of 1.31771 and is currently trading around 1.31840.
WTI crude oil recovered sharply till more than $2 yesterday on trade hopes. Markets eye OPEC meeting, which is to happen today for further direction.
Technically, the pair has broken major support at 1.3180 and this confirms weakness, a dip till 1.3135/1.3090 likely. Extreme bearish continuation only beneath 1.3020.
On the higher side, near term resistance is around 1.3260 and any violation beyond targets 1.3300/1.3385. Trend reversal only over 1.3385.
It is good to sell on rallies around 1.3200-05 with SL around 1.3260 for the TP of 1.3090.