USD/CAD: slipping to key support on bullish rhetoric from BoC

• USD/CAD has broken below the day’s trendline support on Poloz and is testing the 21-HR SMA at 1.3123.
• USD/CAD has lost its footing on a bullish and hawkish rhetoric from the BoC’s governor, Poloz, (albeit repeating what was said in the last presser) speaking while presenting the Bank’s latest MPR  before the House of Commons Finance Committee.

The price has crumbled from the day’s highs of 1.3147 to a fresh low testing 1.31 the figure on an upbeat assessment of the economy’s outlook from both BoC Gov. Poloz and Sr. Dep. Gov. Wilkins while presenting the Bank’s latest MPR  before the House of Commons Finance Committee. Poloz has reminded that the appropriate pace of hikes will depend on their assessment at each fixed announcement date and argues that the economy has solid momentum and continues to operate near its capacity.

Eyes on WTI

Besides the BoC, nor the Fed, the Canadian dollar will continue to take its cues from risk appetite and commodities and CAD remains vulnerable while WTI threatens a break of its recent ‘bear flag’. Oil is generally softer due to the concerns of slowing global macro outlook while production from US, Saudi and Russia combined is at new highs (33mm bbl).

USD/CAD levels

The ADX trend strength indicator remains incredibly weak still with price offering a low ATR while RSI hovers in neutral. Recent support has been observed below 1.3080 around the 100 day MA at 1.3078 that meets the 10-D SMA.  Resistance is expected around 1.3150 guarding the 1.3200- 1.3220 area.