FxWirePro: USD/CAD slips after Fed holds rates steady

• USD/CAD slipped lower on Wednesday  after the Federal Reserve held interest rates steady in a move that was generally expected by economists..

•The Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75%, a widely anticipated decision. However, the outcome revealed a degree of division within the Federal Open Market Committee, with three of the 12 voting members dissenting in favor of a 25-basis-point rate hike.

•The Fed said the U.S. economy is expanding at a solid pace, adding that job growth has kept pace with the workforce and the unemployment rate has remained largely unchanged, echoing its June assessment.

•Before this week's meeting, financial markets had priced in about a one-in-three chance of a Fed rate hike, while fully pricing in a September increase if rates were left unchanged.

•  The ⁠Bank of ​Canada is expected to keep interest rates steady ​this year, with its next policy decision due on July 15.

•  Immediate resistance is located at 1.4077(38.2%fib), any close above will push the pair towards 1.4123(SMA 20).

• Support is seen at 1.3966 (Lower BB) and break below could take the pair towards 1.3940 (50%fib).

Recommendation: Good to sell around 1.4050, with stop loss of 14100,  and target price of 1.3950