USD/CAD reversed back towards its previous resistance line

The pair reversed back towards its previous resistance line after it failed to breakout from a key resistance line. The Federal Reserve made an emergency cut on its interest rate yesterday, March 03. The decision by Fed Chair Jerome Powell came amid the growing fears of the deadly coronavirus. Analysts expect China to grow slower compared to its initial target as economic implications of COVID-19 hunts its economy. In the US, major indices already went tumbling down. Dow Jones Industrial Average had its worst day since August 2011. Meanwhile, the S&P 500 suffers the biggest lost since the 2008 Global Financial Crisis. China is the second largest economy in the world and is the biggest trading partner of the United States. Thus, it is only logical for Fed to cut its rate. On the other hand, the BOC is set to release its own interest rate decision today, March 04. Bank of Canada last cut its rate in 2015.