USD/CAD drops sharply from 6-month highs post-BOC Poloz

Dhwani Mehta FXStreet

The Canadian dollar staged a solid rebound against its American counterpart in the Asian trades, with USD/CAD dropping sharply from half-yearly highs, following BOC Governor Poloz’ remarks.

USD/CAD off-lows, but stays below 1.3200

Currently, the USD/CAD pair trades -0.27% lower at 1.3188, recovery from a sharp dip to 1.3168 lows. USD/CAD experienced steep losses this session as the CAD bulls regained control following BOC Governor Poloz’ speech, as he failed to comment on the future path of the monetary policy.

Over the last hour, the major is seen recovering some ground amid improved risk sentiment as markets priced-in Clinton’s win after the first US presidential election debate got over. While the Loonie remains largely unperturbed by the oil dynamics, as investors await the final outcome of the Algerian oil meeting for next direction.

On Monday, USD/CAD jumped to the highest levels in six months as markets sold-off the CAD in anticipation of any rate cut hint by BOC Poloz, in light of poor Canadian CPI and retail sales data.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3200 (round figure) and 1.3250 (psychological levels) and from there to 1.3276 (six-month high). To the downside, immediate support might be located at 1.3159 (50-DMA) and below that at 1.3131 (100-DMA) and at 1.3100 (psychological levels).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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