15 Apr 2015
USD/CAD extends decline below 1.2300
FXStreet (Córdoba) - USD/CAD fell sharply on Wednesday, accelerating below the key support area of 1.2400/1.2385, as the loonie benefitted from a relatively upbeat BoC statement and higher oil prices.
USD/CAD dropped more than 280 pips from daily highs and struck a 3-month low of 1.2280 before bouncing slightly. At time of writing, the pair is trading at 1.2310, recording a 1.38% loss on the day.
The BoC decided to keep its benchmark rate unchanged at 0.75% and anticipated that real GDP growth will rebound in the second quarter after stalling in the first quarter.
Meanwhile, the CAD was underpinned by crude oil that rose above $57/bbl to YTD highs after the EIA informed that inventories rose less than expected by 1.3 million barrels in the week ended on April 10th, to 483.7 million barrels.
USD/CAD technical perspective
“The MACD has crossed below its signal line for the first time in nine months and the RSI at a similarly low level, providing support for the bearish bias”, said Matt Weller, analyst at FOREX.com. “In the short-term, the path of least resistance for USDCAD will remain lower beneath previous-support-turned-resistance at 1.2400”.
USD/CAD dropped more than 280 pips from daily highs and struck a 3-month low of 1.2280 before bouncing slightly. At time of writing, the pair is trading at 1.2310, recording a 1.38% loss on the day.
The BoC decided to keep its benchmark rate unchanged at 0.75% and anticipated that real GDP growth will rebound in the second quarter after stalling in the first quarter.
Meanwhile, the CAD was underpinned by crude oil that rose above $57/bbl to YTD highs after the EIA informed that inventories rose less than expected by 1.3 million barrels in the week ended on April 10th, to 483.7 million barrels.
USD/CAD technical perspective
“The MACD has crossed below its signal line for the first time in nine months and the RSI at a similarly low level, providing support for the bearish bias”, said Matt Weller, analyst at FOREX.com. “In the short-term, the path of least resistance for USDCAD will remain lower beneath previous-support-turned-resistance at 1.2400”.