USD/CAD edges higher, approaches 1.2900 after BoC decision

USD/CAD edged a tad higher at the beginning of the American session, after the Bank of Canada left its monetary policy unchanged as expected.

The Bank of Canada announced it is maintaining its monetary policy unchanged, with the target for the overnight rate at 0.5%. The BoC also said it expects a strong rebound in the second half of the year despite a disappointing second quarter.

The loonie however, weakened slightly after the decision, with USD/CAD climbing to a daily peak of 1.2892 in recent dealings. At time of writing, the pair was trading at 1.2885, up 0.33% on the day.

USD/CAD levels to consider

As for technical levels, next  resistances line up at 1.2900 (psychological level), 1.2941 (100-day SMA) and 1.2988 (10-day SMA). On the other hand, supports are seen at 1.2822 (Sep 7 low), 1.2763 (Aug 18 low) and 1.2677 (Jun 23 low).