USD/CAD Outlook (23 January 2020)

Overall, USD/CAD is ranging across. Recently, USD/CAD moved higher after the weakening of the Canadian dollar due to the dovish interest rate statement released by the Bank of Canada (BoC).
Yesterday, the BoC held interest rate unchanged at 1.75%.
In the interest rate statement, the BoC stated that recent Canadian economic data pointed to weaker growth in the near term. Also, the BoC has revised its growth forecast for 2020 slightly lower as compared to the previous forecast.
The Canadian CPI m/m data (Actual: 0.00%, Forecast: 0.0%, Previous: -0.1%) released yesterday was as forecasted.
Currently, USD/CAD is moving towards the resistance level of 1.31800 and the next support level is at 1.29700.
Look for buying opportunities of USD/CAD if it breaks the resistance level of 1.31800.

Analysis of USD/CAD will resume on 28 January 2019. Happy Lunar New Year!