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19 Mar 2014
USD/CAD at 1-month highs, nears 1.1200
FXStreet (Córdoba) - The USD/CAD gathered momentum and pushed to a fresh 1-month high as the Loonie continues to suffer in the wake of yesterday's Poloz dovish comments.
BoC Poloz said Tuesday he can't rule out rate cuts even though the BOC does not have (an explicit) easing bias. He also said the Canadian economy is likely to underperform during the first quarter (mainly due to weather), amidst a more ample context of slow growth, low interest rates and consumer prices lower than the central bank's 2% target.
USD/CAD technical levels
The USD/CAD extended gains into a second day Wednesday and having broken above the 1.1160 area, the pair reached a high of 1.1174 in recent dealings, with the 1.1200 mark as next target. Next resistances line up at 1.1223 (Jan 31 high) which if broken would lead the pair to its highest since Jul 15 and 2009.
On the other hand, supports are seen at 1.1120 (Mar 19 low), 1.1106 (10-day SMA) and 1.1092 (21-day SMA).
BoC Poloz said Tuesday he can't rule out rate cuts even though the BOC does not have (an explicit) easing bias. He also said the Canadian economy is likely to underperform during the first quarter (mainly due to weather), amidst a more ample context of slow growth, low interest rates and consumer prices lower than the central bank's 2% target.
USD/CAD technical levels
The USD/CAD extended gains into a second day Wednesday and having broken above the 1.1160 area, the pair reached a high of 1.1174 in recent dealings, with the 1.1200 mark as next target. Next resistances line up at 1.1223 (Jan 31 high) which if broken would lead the pair to its highest since Jul 15 and 2009.
On the other hand, supports are seen at 1.1120 (Mar 19 low), 1.1106 (10-day SMA) and 1.1092 (21-day SMA).