FxWirePro: USD/CAD extends gains ahead of Fed rate decision

• USD/CAD  advanced on Wednesday   as market positioned ahead of a Federal Reserve policy decision..

• Markets strongly bet that ​Fed policymakers will lift the benchmark rate by 0.25 percentage point ​to a 3.75% to 4% range and signal further tightening ⁠ahead. The policy decision is due at 2:00 p.m. ET (1800 GMT).

•Oil prices slipped as reports that Saudi Arabia was offering additional crude cargoes via Oman eased concerns about the scale of Middle East supply disruptions.

• Canadian housing starts were little changed last month as construction activity moderated, adding to signs of a stalling housing market.

• Canadian housing starts were little changed in August at an annualized 229.0k units, while the six-month moving average fell 1.3% m/m to 244.1k.   

 •  Immediate resistance is located at 1.3961(Higher BB), any close above will push the pair towards 1.4058(38.2%fib.).

• Support is seen at 1.3913(50%fib),and break below could take the pair towards 1.3845(SMA 20.)..

Recommendation: Good to buy around 1.3920 with stop loss of 1.3850 and target price of 1.4000