Yesterday, the Bank of Canada kept its benchmark rate unchanged at 0.25% as expected, pointing out that the impact of the Covid-19 pandemic “appears to have peaked, although uncertainty about how the recovery will unfold remains high.” The central bank said it is committed “to continue large-scale asset purchases until the economic recovery is well underway.”

From a technical point of view, on a daily chart, USD/CAD has broken below the lower boundary of a triangle and is capped by its declining moving averages. The daily RSI stands within its selling area between 50 and 30. Readers may therefore consider the potential for further weakness below horizontal resistance at 1.3900. The nearest support would be set at previous overlap at 1.3435 and a second one would be set at set at horizontal support at 1.3200 in extension

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