USD/CAD: Little Reaction To BoC Cut

Source: DailyFX.com

With the BoC cutting just 50bp as discounted by FX traders, USD/CAD has tried to break north, but run into heavy resistance ahead of 1.2700. The high was 1.2695, and traders note corporate sell orders scattered between 1.2685/25 retarding topside progress. Spot has oscillated between 1.2650//75 since topping out, with traders somewhat ambivalent. The 24-hr M/A is at 1.2575, and traders are in buy dips mode between there and the top of the normal distribution channel on the hourlies at 1.2620. Overbought hourly Bollingers at 1.2715/65 give the topside some room to breath if spec types want to try and push it; oversold way down at 1.2385/1.2430 look way out of reach for now. Option expires this morning at 1.2500 and 1.2600 were expected to drag prices lower, but the BoC news though expected, is overshadowing them.