USD/CAD tumbles below 1.2800, hits 1-year lows

USD/CAD continued to decline during Poloz press conference, following the rate hike from the Bank of Canada. The central bank rose the key rate for the first time since 2010, from 0.50% to 0.75% and triggered a rally of the loonie in the market. 

BoC's Poloz speech: Will monitor carefully how economy adjusts 

BoC's Poloz speech: Uncertainty around U.S. trade policy remains

The pair dropped 150 pips since the decision. It was trading around 1.2910 and recently bottomed at 1.2743, the lowest level since June 2016. The pair remains near the lows, with a strong bearish momentum. 

The loonie is outperforming and rising sharply across the board, supported by the BoC decision and Poloz words. 

Technical levels 

To the downside, support levels might be located at 1.2725/30, 1.2700/05 and 1.2650/55 (Jun 2016 lows). On the upside, resistance now could be seen at 1.2770, 1.2815 (Sep low) and 1.2855 (Jul 7 low).