FxWirePro: USD/CAD recovers slightly from early decline but bears are not done yet

USD/CAD initially dipped but recovered ground as investors digested Bank of Canada rate decision and awaited Fed rate decision.

• The Bank of Canada is expected to hold rates steady on Wednesday, with recent data showing the economy remains stable and aligned with the central bank’s outlook despite U.S. tariff pressures.

• BoC Governor Tiff Macklem said after the late-October 25-basis-point cut that borrowing costs were near the right level and rates would stay on hold if the outlook remains stable.

• The BoC left its policy rate unchanged at 2.25% last month, the lower end of the neutral range where the economy is neither stimulated nor restrained.

• Markets are also focused on the Fed later Wednesday, with investors watching the FOMC statement for clues on inflation trends, growth sustainability, and the path of future policy easing.

•  Immediate resistance is located at 1.3658(38.2%fib), any close above will push the pair towards 1.3744(50%fib).

• Support is seen at 1.3546(23.6%fib) and break below could take the pair towards 1.3506(Lower BB).

Recommendation: Good to sell  around 1.3600, with stop loss of 1.3680 and target price of 1.3550