USD/CAD Price Analysis: Dollar breaks range, but shows problems above 1.3400.
- USD/CAD broke recent range after the Bank of Canada rate cut, approaching last week highs.
- Above 1.3400 it could rise to test 1.3435 and then 1.3465.
The USD/CAD jumped to 1.3430 after the statement from the Bank of Canada announcing a 50bps rate cut. It broke above the short-term range between 1.3315 and 1.3390. The upside was capped by 1.3430 and then pulled back to 1.3400.
As long as it holds above 1.3390, the dollar could rise to test 1.3435. A break higher could turn the focus to last week highs at 1.3465. A slide below 1.3390 would ease the bullish pressure, bringing the 1.3315/1.3390 range back into business.
In the daily chart, the key support emerges around 1.3290/1.3300, the confluence of the 20-day moving average and an uptrend line.
USD/CAD 1-hour chart