USDCAD appreciated after BOC left the Key Interest Rate unchanged at 1.75%. In addition, the low oil price and the arrest of a top Chinese manager (Huawei) in Canada at the request of US would put some pressure on the BOC’s prospects. On the contrary, the BOC support that the higher interest rate is necessary to offset inflation at current target levels. Major support is found at the 1.3180 and resistance at the 1.3520.

Weekly FX Strategy

USDCAD

S1 1.3220 R1 1.3470
S2 1.3180 R2 1.3520
S3 1.3000/20 R3 1.3620

Technical Analysis

The CCI remains at the overbought territory.
The RSI remains at the overbought territory.

 

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Christos Nikolaou

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