USD/CAD Outlook (27 January 2022)

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Overall, USD/CAD is ranging across. Recently, USD/CAD bounced off the support zone of 1.26100 after the hawkish tone delivered by the U.S. FOMC.

During the monetary policy meeting, the Bank of Canada (BoC) kept interest rate unchanged at 0.25%. The central bank has also removed its exceptional forward guidance on its policy interest rate. Furthermore, the BoC highlighted that once it starts to increase interest rate, it will consider exiting the reinvestment phase of its bond purchase and start the unloading process.

USD/CAD’s next support zone is at 1.26100 and its next resistance zone is at 1.29200.
Look for short-term buying opportunities of USD/CAD.

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