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USD/CAD : Bearish Trend Continues

Bank of Canada has kept its benchmark lending rate unchanged at 1% same it has been at for three and a half years. In Canada, economy expanded by 2.9% in fourth quarter of 2013 which was slightly stronger than the Bank anticipated and the bank still expects underlying growth around 2.5% in 2014 as first quarter is likely to be softer. The Bank's tone was largely unchanged from January and didn't give any sign of dovishness which market was expecting. However another report from US ISM Non-manufacturing PMI and ADP Non-farm employment change showed slow growth in US economy which dragged down US dollar against Canadian Dollar. 

On 4 hour chart the pair found support at 1.1039 however it still seems bearish as it is consolidating within the descending triangle.Currently it is trading below the 50 day and 100 day moving averages which is also giving some bearish sign. The pair should break the support trend line and continue its downtrend once it will reach the apex of the descending triangle.