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FxWirePro: USD/CAD slides at start of action-packed week

• USD/CAD dipped on Monday  as markets positioned for the U.S. Federal Reserve And Bank of Canada monetary policy easing cycle this week .

• Markets are fully pricing in a 25-basis-point rate cut from the Federal Reserve on Wednesday, with CME’s FedWatch tool assigning the move a near-100% probability.

• The Bank of Canada is expected to trim rates by 25 bps this week, while the BoJ and BoE are likely to keep policy unchanged.

Canada’s central bank faces mounting pressure to resume rate cuts after pausing since March, following a cumulative 225-basis-point reduction,   one of the most aggressive easing cycles among G10 peers.

•  Immediate resistance is located at 1.3821(SMA 20), any close above will push the pair towards 1.3921(50%fib).

• Support is seen at 1.3757 (38.2%fib) and break below could take the pair towards 1.3715(Lower BB).

Recommendation: Good to buy  around 1.3800, with stop loss of 1.3650 and target price of 1.3900

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