Canada’s currency was the biggest loser over the past six months among 10 developed-nation peers. The Canadian dollar dropped as the Bank of Canada held its benchmark interest rate at 1 percent, where it’s been since 2010, and remained neutral on the direction of its next move. The currency weakened 0.3 percent to C$1.1011 per U.S. dollar. The Bank of Canada held its benchmark rate steady Wednesday, and kept its ‘neutral’ stance on future moves in an as-expected policy statement. The bank cut its growth forecast of the year from 2.5% to 2.3% on the impact of the harsh winter. It also pushed up its call for inflation this year, warning about the risks of low inflation.
Technical view-
The pair has been in a down trend from 1.1279 levels. It made a low at 1.0859 levels and pushed towards the 38.2 fib level. Currently it is facing resistance at 1.1018 levels. In Asia's trading session the pair is trading at 1.1005, unable to trade above the 1.1018 levels. On the up side, if the pair crosses the 38.2 fib level at 1.1018 levels, it will push towards the major resistance level at 1.1054 (50SMA) in the daily chart. Once it crosses the 50SMA level, it will push towards 1.1066 and 1.1080 levels. The complete bull track will come only above the 1.1080 (March 28 high). In the daily chart RSI is favoring bulls.
On the down side, the pair has strong support between 1.0954-1.0960 levels. Once it breaks this level, it will drift to 1.0942, 1.0920, 1.0860, and 1.0810 levels.
Intraday-
The pair is trading between 1.0959 (50SMA) - 1.1034 (200EMA) in the H4 chart. We expect the pair will move to the upside only sustaining above the 1.1034 levels for 1.1067 and 1.1118. The level of 1.1070 is the very crucial for bulls to cross and a close above that will fuel more strength. If the pair breaks the 1.0959 level, it will drift all the way to 1.0940, 1.0915, and 0.892 levels.
