• USD/CAD edged higher but gains were as investors awaited crucial monetary policy decisions in the U.S. and Canada later this week.
• The BoC is likely to keep rate steady at 2.25% this week, according to all 33 economists in the December 2-5 Reuters poll, in line with market pricing.
•After delivering 275 basis points of rate cuts, one of the most aggressive among G10 economies, the central bank signaled a halt in rate cuts in October, citing stable inflation.
• In the U.S., the Fed is widely expected to cut interest rates in December's meeting, with markets pricing in an 86% chance of a quarter-point cut.
Top of Form
Bottom of Form
• USD/CAD has seen a 1.3852-1.3800 range on Monday, chart points to a drop towards 1.3750 level.
• Immediate resistance is located at 1.3947(50%fib), any close above will push the pair towards 1.4011(SMA 20).
• Support is seen at 1.3803(38.2%fib) and break below could take the pair towards 1.3786 ( Lower BB).
Recommendation: Good to sell around 1.3870, with stop loss of 1.3950 and target price of 1.3750
