USD/CAD consolidates losses, at lowest since October

USD/CAD dropped after the decision of the Bank of Canada to leave rates unchanged, as expected. The loonie rose modestly in the market following the statement and then stabilized, consolidating gains. 

Versus the US dollar, it reached the highest level since October. USD/CAD bottomed at 1.3232 and then rebounded modestly, finding resistance below 1.3260. Currently, it trades at 1.3235/38, down 0.35%. 

The decline takes place after the BoC presented a moderate growth outlook. Next week will be the turn of the Federal Reserve. Crude oil was falling 1.0%, with the WTI falling toward $50.00 and not helping the loonie. 

USD/CAD weaker on steady BoC  

USD/CAD levels to watch 

The pair continues to move with a bearish bias in the short-term. Now is testing a strong support area that could be seen around 1.3220/30 (July highs); a daily close under 1.3220 would expose 1.3200. Below here, support areas could be located at 1.3130 and 1.3075 (uptrend line from April low). 

On the flip side, resistance levels might lie at 1.3255/60 (American session high), 1.3295 (daily high) and 1.3355 (Nov 30 low / Dec 5 high).