FxWirePro: USD/CAD downside pressure builds, key support level in focus

• USD/CAD slipped  lower on Monday  as dollar weakened ahead speech from Federal Reserve Chair Jerome Powell to gauge the central bank's policy decision later this month.

• Fed Chair Powell is scheduled to speak later in the day. Traders will scrutinize his remarks for clarity about his position on any upcoming interest rate cuts..

• While most officials continue to strike a cautious tone, dovish hints from select voting members and reports linking Kevin Hassett to Powell’s succession have fueled hopes for more rate cuts ahead.

• Traders are pricing in an 87.6% chance for a 25-basis-point interest rate cut in December, roughly doubling the odds from late last month, according to CME Group's FedWatch Tool.

• Traders remain focused on Friday’s release of the delayed September inflation figures, a critical input for Fed policy outlook.

•  Immediate resistance is located at 1.4035(38.2%fib), any close above will push the pair towards 1.4053 (SMA 20).

• Support is seen at 1.3959(50%fb) and break below could take the pair towards 1.337(Lower BB).

Recommendation: Good to sell  around 1.4000, with stop loss of 1.4080  and target price of 1.3920