22 Jan 2015
USD/CAD takes a breather near 6-year highs
FXStreet (Córdoba) - USD/CAD moved off 6-year highs and is taking a breather after rallying over 300 pips on Wednesday, following BoC decision to cut the overnight rate.
The loonie slumped across the board after the Bank of Canada cut interest rate by 25 bps to 0.75% and downgraded growth forecast in response to falling oil prices.
USD/CAD rose to its highest level since April 2009 at 1.2393 before pulling back and entering a calmer phase. Despite another upside attempt, the pair has given up further ground during the European session, finding support at the 1.2325 zone so far. At time of writing, USD/CAD is trading at 1.2335, virtually unchanged on the day
USD/CAD levels to watch
In terms of technical levels, USD/CAD could find immediate resistances at 1.2393 (6-year high Jan 21), 1.2400 (psychological level) and 1.2474 (Apr 22 2009 high). On the flip side, supports are seen at 1.2325 (daily low), 1.2300 (psychological level) and 1.2275 (hourly low Jan 21).
The loonie slumped across the board after the Bank of Canada cut interest rate by 25 bps to 0.75% and downgraded growth forecast in response to falling oil prices.
USD/CAD rose to its highest level since April 2009 at 1.2393 before pulling back and entering a calmer phase. Despite another upside attempt, the pair has given up further ground during the European session, finding support at the 1.2325 zone so far. At time of writing, USD/CAD is trading at 1.2335, virtually unchanged on the day
USD/CAD levels to watch
In terms of technical levels, USD/CAD could find immediate resistances at 1.2393 (6-year high Jan 21), 1.2400 (psychological level) and 1.2474 (Apr 22 2009 high). On the flip side, supports are seen at 1.2325 (daily low), 1.2300 (psychological level) and 1.2275 (hourly low Jan 21).