Forex: USD/CAD breaks past 1.0315/20 to 1.0345 high as BOC stands pat

 @ibtimes
on January 19 2010 9:29 AM

FXstreet.com (Barcelona) - Dollar rally from 1.0250 session low has extended past resistance area at 1.0315/20, as the pair rocketed 50 pips to 1.0345 session high after the Bank of Canada released its decision to keep its overnight rate on hold.

The Bank of Canada's monetary policy committee decided to maintain its benchmark interest rate on hold at 0.25% while assessing that Canadian GDP will grow somewhat below expectations through 2010. Furthermore, the BOC observed that a strong CAD is a significant drag on economic growth.

At the moment, the pair is pulling back to levels around previous resistance at 1.0315/20 (Jan 14,15 and 18 high), and below here, next support levels lie at 1.0240/50 (Jan 18/session low) and 1.0225 (Jan 14 low). On the upside, initial resistance lies at 1.0350 session high, and above here, 1.0370/85 (Jan 7/8 high) and 1.0410.

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