• USD/CAD dipped on Wednesday as Canadian dollar gained some traction after Bank of Canada interest rate decision..
·• The Bank of Canada left its key interest rate unchanged on Wednesday, saying higher energy prices were not broadly fueling inflation.
• Governor Tiff Macklem reiterated that the bank would not hesitate to raise rates if needed to keep inflation under control..
• Wednesday’s decision marked the fifth straight meeting with the BoC holding its key rate at 2.25%, amid a mixed economic outlook..
•Investors were pricing in 32 basis points of rate hikes by December, down from 37 basis points before the policy decision, swap market data showed.
• Immediate resistance is located at 1.3973 (23.6%fib), any close above will push the pair towards 1.4023(Higher BB).
• Support is seen at 1.3864(38.2%fib) and break below could take the pair towards 1.3442(SMA20).
Recommendation: Good to but around 1.3930, with stop loss of 1.3870, and target price of 1.4000
