The pair surged nearly hundred pips to new over sixteen months high after The Bank of Canada left interest rates unchanged in expected action on today’s rate decision meeting.
The central bank warned that Canadian economy has less momentum in Q4 and that overall inflation rate would ease more than expected in coming months.
Regarding the pace of rate hikes, the central bank pointed at a number of factors that impact and all will be re-assessed ahead of Jan 2019 meeting.
Fresh advance broke above 1.3374 (50% retracement of 1.4688/1.2061) and cracked key barrier at 1.3386 (former 2018 high, posted on 27 Jun), signaling completion of 1.3386/1.2782 corrective phase.
The US dollar moved higher across the board, supporting bullish scenario for USDCAD pair.
Sustained break above 1.3386 would generate bullish signal for continuation of the uptrend from 1.2061 (08 Aug 2017 low) towards targets at 1.3588/98 (Nov/Dec 2016 highs) and 1.3684 (Fibo 61.8% of 1.4688/1.2061) in extension.
Res: 1.3121; 1.3174; 1.3197; 1.3226
Sup: 1.3065; 1.3056; 1.3027; 1.3014