USD/CAD stumbles following BOC cut

The price action seen in the USD/CAD since this time yesterday has seen the US dollar drop back to where it started, before the 0.50% cut from the Bank of Canada (BOC) yesterday afternoon. Of course a 0.50% reduction was very much the expected outcome. The USD/CAD certainly struggled to rise above 1.3850 following that rate cut and even when it did it hit a brick wall at 1.3863 and later closed in the US at 1.3836. So far today it has been edging lower and set a session low this morning, at 1.3821. The prospect of the move by the BOC being priced in at the current levels was highlighted and the price action since would seem to confirm that. The question now; is where to from here? Well, it looks like US longs might be at risk in the short term, unless we see something of meaningful bounce from the current levels. The USD/CAD is currently trading at 1.3825