Comment on the main exchange rate pair: USD/CAD

USD/CAD still maintains a downtrend after the decision of the Bank of Canada

USD/CAD has remained in a downtrend since Wednesday after the BoC voted to keep interest rates unchanged at 5.0%. However, the BoC still leaves open the possibility of raising interest rates even though the economy has weakened somewhat.

From a technical perspective, USD/CAD fell below the 100-day MA after failing to overcome trend resistance at 1.3600. If bearish momentum continues to increase in the coming days, support lies at 1.3515 to 1.3485, coinciding with the 200 SMA and December lows.

In case the price reverses to the upside, the first resistance lies at 1.3600. A break above this resistance could take the pair back towards 1.3630, beyond that to the 50-day SMA at 1.3700.