Loonie Falls Further after BoC Lowered Tone/Forecasts

Technical analysis of Forex market

The pair surged above 1.35 barrier, hitting levels last traded in early January, after Bank of Canada kept interest rates unchanged at 1.75% but changed rhetoric about need for future rate hikes and lowered its growth forecast for 2019.

Fresh bullish acceleration extends rally of the previous day and broke above key barriers at 1.3450/67 (28 / 7 Mar highs, as well as psychological 1.35 resistance, with daily close above these levels needed to confirm strong bullish signals.

Bulls approached barrier at 1.3524 (Fibo 76.4% of 1.3664/1.3068 fall), break of which would open way towards 2018 high at 1.3664 (31 Dec), as strong bullish setup of daily / weekly studies supports scenario.

– advertisement –

Overbought conditions suggest price adjustments, which could be described as positioning for further advance.

Broken key barriers now reverted to solid supports which should ideally contain corrective actions.

Res: 1.3524; 1.3566; 1.3600; 1.3664
Sup: 1.3467; 1.3450; 1.3437; 1.3400

Signal2forex reviews