Comments this morning from the Band of Canada came out this morning during a testimony in Ottawa, but the one comment resonating with traders is “a lower CAD is ‘absolutely’ a net benefit.” This comment (amongst others) has helped the USD/CAD bounce from a key support today. Take a look:

The 4 hour chart was showing a divergent relative strength ahead of the testimony as we approached the 161% extension of the recent range.

After the breathtaking move higher in the pair over the last year, and the lows from 2001, we have hit some major fib level confluence near the 1.2000 level.

 

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I did initiate a long USD/CAD trade today ahead of the BOC Governor’s testimony