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​Technical Analysis: USDCAD bounces off multi-day-old support line ahead of BOC

USDCAD takes a U-turn from a one-month-old falling trend line while confronting short-term resistance on early Wednesday. The pair remains on the recovery mode ahead of the Bank of Canada (BOC) meeting. Also likely to affect the pair will be the US data and the Fed's Beige Book as well as the coronavirus headlines. Even if the Canadian central bank isn't expected to announce any further rate cuts today, an upbeat statement will be enough for the pair to slip below the aforementioned support line and 61.8% Fibonacci retracement of March month upside, near 1.3830. Following that, the quote could drop further towards 1.3750 and 1.3700 during consecutive fall.

In a case where the BOC remains ready to take further action, also cites downbeat comments, the pair may rise towards the monthly resistance line, at 1.4090. Though, a sustained break above 1.4090 will recall the buyers to question 1.4150 in search of 1.4340 level comprising 23.6% Fibonacci retracement.

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