USD/CAD – BOC Surprise Rate Cut Puts a Base at 1.3900, 1.4200 Caps

The Canadian Loonie had its own choppy session, initially dropping to an overnight low at 1.39218 on the broad-based US Dollar weakness. The Bank of Canada surprised with a 50-basis points rate cut late Friday to 0.25% from 0.75% which saw the USD/CAD bounce to 1.4000 in late New York. The Bank of Canada joined other countries and lowering their interest rates toward zero.

USD CAD - 1 H Chart - Daily FX - 30 March 2020
USD CAD – 1 H Chart – Daily FX – 30 March 2020

This morning’s risk-off start saw USD/CAD climb to 1.4082 before easing to settle at 1.4065. Expect another wild ride in this currency pair today. USD/CAD has immediate resistance at 1.4080 followed by 1.4120. Immediate support can be found at 1.4000 and 1.3950. Look for a likely range today of 1.4000-1.4200. Am neutral, looking to trade the range.

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