The 1.4150-63 is being tested after emergency rate cut
The Bank of Canada had a another emergency rate cut of 50 basis points that has taken their target rate to 0.25%.
The USDCAD as rallied off of the decision and currently tests a topside trend line, the 38.2% retracement of the March trading range, and a swing area. All of that is clustered at the 1.4150 to 1.41629 area. A move above would open the door for further upside momentum with the 100 hour moving average at 1.42922 a target (on increasing momentum). The swing high from yesterday comes and below that at 1.42747 and would be another, closer target.
So far, traders are leaning against the aforementioned area as risk can be defined and limited. But don't be surprised to see stops on a break above.
