USDCAD Jan 26 to Jan 30 Outlook

Recap
Was consolidating until BOC surprised the world with a rate cut. Surprise breakout target of 200% range expansion tagged by the end of the week. Closed the week above Y+4 and near week high.

Outlook
Canada is an exporter of natural resources and rate cut does not improve its competitiveness in those markets even though Loonie took a direct hit. Long term negative impact on economic growth will be felt in 6 months.

More upside likely this week as many shorts are trapped. 1.26 is next mild resistance zone that may put a pause to the run.