• USD/CAD slipped lower on Wednesday as the Canadian dollar gained after the Bank of Canada held rates steady.
• The Bank of Canada on Wednesday kept its key interest rate at 2.75%, pausing for the first time after seven straight cuts, and signaled readiness to take decisive action if inflation pressures resurface.
• The Bank, which started cutting rates in June, opted to hold steady to assess the impact of tariffs, emphasizing a cautious approach going forward.
• BoC Governor Macklem stated that uncertainty surrounding U.S. tariffs made it impossible to provide standard economic forecasts, prompting the Bank to present two alternative economic scenarios instead.
• Immediate resistance is located at 1.3966 (Daily high), any close above will push the pair towards 1.4119(38.2%fib).
• Support is seen at 1.3869(23.6%fib) and break below could take the pair towards 1.3797(Lower BB).
Recommendation: Good to sell around 1.3980, with stop loss of 1.4100 and target price of 1.3900
