USD/CAD pushes lower to test 200-DMA after Poloz's comments

The USD/CAD pair reversed course in the late US afternoon amid a softer greenback and a stronger loonie. At the moment the pair trading flat at 1.3248 after recording a 100-pip drop on Wednesday. 

Earlier during the day, the loonie was able to catch bids after the Bank of Canada released its statement. However, during the BoC press conference, Governor Poloz said that there still was a possibility of lowering the interest rates as the uncertainty regarding the U.S. politics was weighing on the outlook and allowed the pair to find support.

• BoC's Poloz: Would be wrong for us to try to offset market factors that drive CAD

Later in the session, Governor Poloz once again hit the wires and noted that it would be wrong for them to try to offset market factors that drive the Canadian dollar. The latter comments were largely ignored as the USD sell-off remained as the primary focus of the traders.

• US Dollar approaches 100 on dovish Trump

Technical levels to consider

A break below 1.3245 (200-DMA) would aim for 1.3200 (psychological level) and 1.3160 (Feb. 28 low). To the upside, resistances align at 1.3340 (daily high) followed by 1.3375 (20-DMA) and 1.3425 (Apr. 10 high).