Initial move was to the downside after Bank of Canada rate decision
The Bank of Canada kept rates unchanged and the scale back some market operations.
The initial reaction was to the downside. However the lows from both yesterday and today held support, and the price has since rebounded back toward the levels seen just before the decision.
Technically, the pair also has the 200 day moving average at 1.34613 as a support target. The low price today reached 1.34791. It's not exactly testing that 200 day moving average but getting closer to it. The price is currently trading well above the level, however, at 1.35241.
The Bank of Canada was a bit more upbeat, but the technical support seems to be putting a limit on the strength of the loonie. Resistance on the topside will behind at the underside of the broken trend line on the hourly chart above. That level comes in around the 1.3600 level.
Crude oil inventory data will be released at the bottom of the hour. The private data showed that there was a surprise drawdown of -500,000 barrels vs. expectations of a build of 3 million.
Gasoline inventories saw a build of 1.706 million barrels vs. an estimate today of a 300,000 barrel build.
Crude oil is currently trading at $36.74 near unchanged on the day.
