• USD/CAD strengthened on Monday as robust economic data boosted greenback across the board.
• The greenback has risen for three straight weeks as a run of positive economic data led investors to scale back expectations about the size and speed of rate cuts from the Fed.
• The Bank of Canada is widely expected to cut its policy rates by 50-basis point on Wednesday, which would be the first superized reduction in 15 years outside of the pandemic era.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3854(23.6%fib), any close above will push the pair towards 1.3900(Psychological lvel ).
• Support is seen at 1.3795(5DMA) and break below could take the pair towards 1.3785(38.2%fib).
Recommendation: Good to buy around 1.3830 with stop loss of 1.3730 and target price of 1.3900
