The pair has made a low of 1.3309 yesterday and recovered after weaker than expected Canadian GDP data.
Canadian GDP data declined 0.5% in September versus an expected growth of 0.1%. The contraction in GDP was mainly due to weakness of the energy sector.
The USD/CAD recovered till 1.33939 after GDP miss. The pair is trading in narrow range ahead of BOC statement today and US Crude oil inventories.
BOC has already cut the benchmark interest rates twice this year and Governor Poloz is expected to follow wait and watch approach which may keep the Loonie to trade in tight range.
Technically the pair’s minor resistance is around 1.33800 and break above targets 1.3400/1.3435.
Overall trend reversal only above 1.4356 (Sep 29th 2015 high).
On the down side major support is around 1.3300 and break below targets 1.3260/1.3240.
It is good to buy at dips around 1.3330 with SL around 1.3290 for the TP of 1.3400/1.3435
Canada Events for the Day
3:00 Pm ( GMT ) BOC rate statement