The USD/CAD surged higher following Wednesday Fed’s decision to keep rates unchanged. The decision on Thursday by the Bank of England to keep rates unchanged and leave their quantitative easing program in place helped further buoy the greenback.  The FOMC announced that it will begin to taper its bond purchase program beginning in November and will continue to do this in December. ADP announced that private jobs increased more than expected in October ahead of Friday’s government jobs report.

Technical Analysis

The dollar rallied sharply on Thursday. The exchange rallied, bouncing off suport near the 10-day moving average, 1.2382. Resistance is seen near the 50-day moving average at 1.2546. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is about to turn positive as the MACD (moving average convergence divergence) index is generated a crossover buy signal….

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