Loonie has been contained in a five-cent range between 1.27 and 1.32 since early May, though it has spent most of the time in the inner 1.28 - 1.31 range. The range looks like a rising wedge, which is generally a bearish pattern.

The BOC left policy unchanged on Wednesday while the oil seems to be in a correction mode. That seems to keep the pair in balance for now. Some resistance shall be found near 1.31, 1.33 and 1.35 and support at 1.27 and 1.25.

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