USD/CAD Outlook (05 March 2020)

Overall, USD/CAD is trending upwards. Recently, USD/CAD trended higher, tested but failed to break above the key level of 1.34 after the Bank of Canada (BoC) cut interest rate by 0.50% from 1.75% to 1.25%, causing a weakening in CAD.
BoC mentioned in the rate statement that although the Canadian economy has been performing well with inflation on target, the coronavirus outbreak is a “material negative shock” to the Canadian and global outlooks. The BoC also mentioned that they are ready to adjust monetary policy further if necessary to support economic growth and keep inflation on target.
Currently, USD/CAD is moving towards the key level of 1.34. Its next support level is at 1.33150 and the next resistance level is at 1.34400.
Look for short-term buying opportunities of USD/CAD if it breaks above the key level 1.34.