• USD/CAD dipped on Wednesday as Canadian dollar firmed after the Bank of Canada held interest rates as expected.
•As anticipated, the Bank of Canada held its policy rate at 2.25% on Wednesday, with Governor Tiff Macklem saying the Canadian economy is showing overall resilience to the impact of U.S. trade actions.
•Macklem said that despite signs of resilience, he expects economic growth to slow in the fourth quarter, with hiring intentions likely to remain subdued.
•The Canadian economy proved resilient as third-quarter annualized GDP growth came in stronger than forecast at 2.6%, accompanied by the creation of 181,000 new jobs from September to November.
• The U.S. Federal Reserve will also announce a rate decision on Wednesday and a majority of economists expect it will cut rates by 25 basis points.
• Immediate resistance is located at 1.3917(38.2%fib), any close above will push the pair towards 1.4000 (Psychological level).
• Support is seen at 1.3826(38.2%fb) and break below could take the pair towards 1.3775(Lower BB).
Recommendation: Good to sell around 1.3850, with stop loss of 1.3950 and target price of 1.3770
