The Bank of Canada giveth, and the Bank of Canada taketh away. After raising rates in two consecutive decisions, the tightening cycle screeched to a halt, or perhaps even a full stop.
USD/CAD was already on the rise since it traded at the 1.20 handle after the second rate rise in September but the move from the BOC sent it above the peak of 1.2770 in August.
Dollar/CAD levels to watch
As the pair gets comfortable above 1.28, the next level to watch is 1.2860, one that was seen back in July as a stepping stone on the way down. It is followed by 1.2940, which capped the pair on a recovery attempt around that time.
1.30 is the obvious level that awaits the pair one notch higher, but real resistance is only at 1.3020.
Further above, the next level is already a big jump: 1.3160, a level that provided support back in June. 1.3240 is notable after serving as support in April, but a more notable level to watch is 1.3320 after capping a recovery attempt in June.
Looking down, the immediate level of support is 1.2770, which remains a significant level. Next down the line is 1.2665 that was resistance in late August. Below, we find 1.26 and 1.2540.
Does the Canadian dollar have more room to the downside? A lot depends on the important publications awaiting the pair next week: the GDP release for August and the jobs report for October.
Who said the Canadian dollar is boring? Here is how all these levels look on the daily USDCAD chart. More: Canadian dollar weekly forecastGet the 5 most predictable currency pairs