FxWirePro: USD/CAD bears capitalize on dollar decline

• USD/CAD slipped lower on Tuesday as  greenback  weakened in the run-up to the U.S. Federal Reserve's highly anticipated monetary policy verdict on Wednesday.

• The Federal Reserve’s two-day policy meeting is expected to end on Wednesday with a 25-basis-point rate cut, which would mark its first dovish move of the year amid signs of a weakening U.S. labor market.

• The decision comes at a time when investors are increasingly concerned about potential political interference in the independence of the U.S. central bank.

• Meanwhile,The Bank of Canada is widely expected to cut interest rates by 25 basis points on September 17, with money markets pricing in a probability of more than 97% for the move.

• On the data front, Canada’s annual inflation rate increased to 1.9% in August, driven by a slower decline in gasoline prices compared with the previous month and a slight rise in food costs, data showed on Tuesday.

• Immediate resistance is located at 1.3784(Daily high), any close above will push the pair towards 1.3813(SMA 20).

• Support is seen at 1.3725(38.2%fib) and break below could take the pair towards 1.3674(23.6%fib).

Recommendation: Good to sell around 1.3750, with stop loss of 1.3800 and target price of 1.3680