• USD/CAD steadied at 1.3590 on Friday as markets focused on the anticipated Fed rate cut.
• The Fed meeting next week is the key risk for investors, with a rate decision and the latest Summary of Economic Projections to be announced.
• A surprise 50bps rate cut and reduced rate forecasts could weaken the dollar.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3617(50%fib), any close above will push the pair towards 1.3640(Aug 20th high).
• Support is seen at 1.3555(38.2%fib) and break below could take the pair towards 1.3490(23.6%fib).
Recommendation: Good to buy around 1.3590, with stop loss of 1.3530 and target price of 1.3660
