USD/CAD plummets to 1.2150 on BoC

Pablo Piovano FXStreet

The Canadian Dollar gained unexpected buying interest vs. the greenback following today’s decision by the BoC, dragging USD/CAD to fresh lows in the mid-1.2100s.

USD/CAD weaker after BoC decision

CAD recorded fresh peaks vs. its neighbour today after the Bank of Canada unexpectedly rose its key rate by 25 bp to 1.0% at today’s meeting.

Spot quickly dropped to the 1.2150 area in the wake of the BoC decision, levels last traded in June 2015, although buyers have rapidly reverted the drop, albeit partially, to the 1.2240/50 band.

USD/CAD significant levels

As of writing the pair is retreating 1.29% at 1.2231 facing the next support at 1.2153 (2017 low Sep.6) seconded by 1.2124 (low Aug.16 2015) and then 1.1916 (low May 14 2015). On the upside, a break above 1.2453 (10-day sma) would expose 1.2557 (21-day sma) and finally 1.2664 (high Aug.31).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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