USD/CAD surges through 1.3500 mark, highest since early Jan. post-BoC

Haresh Menghani FXStreet

• As was widely expected, BoC maintains status quo and leave policy rates unchanged.
• A more dovish tone in the accompanying rate statement weighs heavily on the CAD.
• The USD inches back closer to 22-month tops and remained supportive of the up-move.

The USD/CAD pair caught some aggressive bids and spiked through the key 1.3500 psychological mark, highest since early-Jan. post-BoC announcement.

The Bank of Canada, at its April policy meeting, decided to maintain status-quo and leave benchmark interest rates unchanged at 1.75%. The decision was on expected lines but a more dovish tone in the accompanying rate statement exerted some fresh downward pressure on the Canadian Dollar.

The pair rallied hard and now seems to have stabilized near the top end of its daily trading range as the focus now shirts to updated economic projections, which followed by the post-meeting press conference might further contribute towards driving sentiment surrounding the Canadian Dollar.

Meanwhile, the ongoing US Dollar bullish run, inching back closer to 22-month set in the previous session, coupled with a subdued action around crude oil prices, which tends to influence demand for the commodity-linked currency, remained supportive of the positive tone.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3444
Today Daily Change	0.0022
Today Daily Change %	0.16
Today daily open	1.3422

Trends
Daily SMA20	1.3359
Daily SMA50	1.3323
Daily SMA100	1.3346
Daily SMA200	1.3213

Levels
Previous Daily High	1.3444
Previous Daily Low	1.3342
Previous Weekly High	1.3404
Previous Weekly Low	1.3274
Previous Monthly High	1.3469
Previous Monthly Low	1.313
Daily Fibonacci 38.2%	1.3405
Daily Fibonacci 61.8%	1.3381
Daily Pivot Point S1	1.3362
Daily Pivot Point S2	1.3302
Daily Pivot Point S3	1.326
Daily Pivot Point R1	1.3462
Daily Pivot Point R2	1.3504
Daily Pivot Point R3	1.3564

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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