FxWirePro: USD/CAD slips lower after BoC cut rates, chances of a bigger collapse grows

• USD/CAD declined sharply on Wednesday after Bank of Canada cut its benchmark interest rate for the third consecutive time.

• The Bank of Canada reduced its key policy rate by 25 basis points to 4.25%, in line with forecasts, but raised concerns that slower-than-expected growth could lead to a faster-than-desired decline in inflation.

 • On the data front, Canada reported a smaller-than-expected trade surplus of C$684 million ($505 million) for July, with imports declining faster than exports.  

•  Immediate resistance is located at 1.3557(50%fib), any close above will push the pair towards 1.3600(Psychological level).

• Support is seen at 1.3511(38.2%fib) and break below could take the pair towards 1.3456(23.6%fib).

Recommendation: Good to sell around 1.3540, with stop loss of 1.3650 and target price of 1.3460