FXstreet.com (Barcelona) - The Dollar is plummeting against its Canadian counterpart, after BoC statement suggested that it will lessen the degree of Economic stimulus, and the Dollar has dropped from 1.0110 all the way to session low at 0.9985 at the moment of writing.
The outlook is bearish on thew Dollar, according to Valeria Bednarik, technical analyst at FXstreet.com who points out to 0.9950 and 0.9920 as next support levels: " Next support in the pair comes at the 0.9950 area, weekly low, followed by 0.9920."
On the upside, Bednarik observes parity as initial resistance area now: "Parity is now firs resistance level to watch during corrective movements, that could also extend to 1.0030 whit out harming the trend. Next resistance area, above mentioned 1.0030 comes close to 1.0070/80 zone, not seen at this point."
The BoC has kept its benchmark rate at 0.25%, as widely expected, and the Bank's statement affirmed that economic recovery "proceeding somewhat more rapidly than the Bank had projected", and assessed that with economic outlook improving at the current pace, "the need for such extraordinary policy is now passing."
The outlook is bearish on thew Dollar, according to Valeria Bednarik, technical analyst at FXstreet.com who points out to 0.9950 and 0.9920 as next support levels: " Next support in the pair comes at the 0.9950 area, weekly low, followed by 0.9920."
On the upside, Bednarik observes parity as initial resistance area now: "Parity is now firs resistance level to watch during corrective movements, that could also extend to 1.0030 whit out harming the trend. Next resistance area, above mentioned 1.0030 comes close to 1.0070/80 zone, not seen at this point."
The BoC has kept its benchmark rate at 0.25%, as widely expected, and the Bank's statement affirmed that economic recovery "proceeding somewhat more rapidly than the Bank had projected", and assessed that with economic outlook improving at the current pace, "the need for such extraordinary policy is now passing."
