You would think that with the BOC moving to the sidelines, the loonie would've struggled much more but against the dollar, it isn't so much so the case as the greenback also experienced a weaker January mostly. But as the tides turn this week, we are seeing the pair bounce off a double-bottom pattern just below 1.3300 to run up against its 100-day moving average (red line) once again at 1.3515.
Buyers need to break above that and the 19 January high of 1.3520 in order to resume the upside push back towards 1.3700 again.
Otherwise, it might be a tough one from a technical perspective as the pair continues to trade in between both its 100 and 200-day (blue line) moving averages - with the November lows around 1.3225-35 also adding to key support for any look to the downside.
But for now, the price action mirrors that of most other dollar pairs as highlighted earlier in the day, that is we are seeing them run up against key technical levels but not quite breaking them just yet.
