USDCAD falls after unchanged BoC; downbeat US Housing data pressured the greenback

Slobodan Drvenica Windsor Brokers

The pair fell sharply after Bank of Canada left interest rates unchanged at 0.50% as expected, but the greenback came under increased pressure after downbeat US Housing data in April.
Loonie hit fresh one-month high against the greenback at 3.3430, which lies near strong support provided by Fibo 61.8% of 1.3222/1.3793 rally.
Weakening daily studies suggest further downside which requires close below 1.3440 Fibo 61.8% support for bearish signal and may extend towards 1.3345/1.3300 (100 / SMA’s respectively).
FOMC minutes are next event that may further impact pair’s near-term performance.

Res: 1.3482; 1.3527; 1.3540; 1.3575
Sup: 1.3430; 1.3410; 1.3345; 1.3300

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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