The pair is holding within narrow range on Wednesday and consolidating strong fall in past four days which found footstep at 1.2339. Today’s BoC rate decision meeting is in focus. Minimum expectations in the markets are for hawkish tone from BoC, regarding to recent strong Canadian GDP data, with 22% chances for another 25 bps hike. Loonie is expected to receive strong boost if the central bank raises rates and may accelerate towards 1.2300 zone which is seen as initial target. On the other side, unchanged BoC may not produce too much thrust to the US dollar, with falling 10SMA (1.2466) and daily Tenkan-sen (1.2501) expected to cap recovery rally. BoC interest rate decision is due at 14:00 GMT.
Res: 1.2415, 1.2466, 1.2501, 1.2552
Sup: 1.2364, 1.2339, 1.2274, 1.2188
