• USD/CAD initially dipped but recovered some ground as traders digested a chunky interest rate cut from the Federal Reserve.
• The U.S. central bank cut rate by half a percentage point, exceeding the typical quarter-point adjustment.
• Following the rate cut announcement, Fed Chair Jerome Powell stated that the central bank's forecast for interest rates did not indicate a need for urgent action.
• Markets are now fully anticipating a cut of at least 25 basis points at the Fed's November meeting, with approximately a 40% chance of an additional 50 basis point cut.
• Immediate resistance is located at 1.3611(38.2%fib), any close above will push the pair towards 1.3611(61.8%fib).
• Support is seen at 1.3548(23.6%fib) and break below could take the pair towards 1.3506( (Aug 23rd low).
Recommendation: Good to sell around 1.3600, with stop loss of 1.3680 and target price of 1.3480
