The 200 mma is at 1.2338 on my charts and the top on this move came in at 1.2324
USD/CAD Monthly chart 21 01 2015
14 pips is low enough not to argue about in calling it a hold of the level as we slip back to 1.2275. That’s a big old jump for the pair and we’ll need to see if it’s going to maintain the run by building somewhere between here and the 1.2115 breakpoint.
Personally I’m quite shocked that the BOC cut rates. It’s not an inflation move and just cutting on the oil price is a bit of a stretch, no matter if it is a big part of the economic make up. They’re trying to stave off any downside by giving the economy a little bit of an easing boost but that trade might change if we suddenly see oil prices and inflation rising.
Anyway, the pen twiddling Poloz is up now to give his reasons.
