• USD/CAD initially dipped on Thursday but recovered some ground as the U.S currency firmed after data showed the U.S. economy grew faster than expected in the second quarter.
• Markets are nearly certain that the U.S. Federal Reserve will ease its monetary policy when it meets in September, following Chair Jerome Powell's dovish pivot last week.
• The Fed's preferred inflation measure, the personal consumption expenditures (PCE) index, set to be released on Friday, could offer valuable insights into the potential scale of upcoming rate cuts.
• Immediate resistance is located at 1.3496 (38.2%fib), any close above will push the pair towards 1.3554(50%fib).
• Support is seen at 1.3433(23.6%fib) and break below could take the pair towards 1.3424(Lower BB).
Recommendation: Good to buy around 1.3450, with stop loss of 1.3370 and target price of 1.3520
