• USD/CAD recovered from 7-week -low on Tuesday as greenback firmed ahead of Federal Reserve's monetary policy meeting this week.
• Investors expect the Fed to hold interest rates steady at its two-day meeting ending Wednesday. They will also be eyeing Fed Chair Jerome Powell's remarks closely..
• The upcoming meeting is widely expected to be Jerome Powell’s final one at the helm of the U.S. central bank. Senator Thom Tillis lifted his hold Sunday on the confirmation of Kevin Warsh after the U.S. Department of Justice ended its investigation into Powell..
• Warsh is expected to advocate for rate cuts, though surging energy prices linked to the Iran conflict could make other members of the central bank's policy-setting Federal Open Market Committee cautious.
• Immediate resistance is located at 1.3762(SMA 20), any close above will push the pair towards 1.3803 (50%fib).
• Support is seen at 1.3658(38.2%fib) and break below could take the pair towards 1.3561(Lower BB).
Recommendation: Good to sell around 1.3700, with stop loss of 1.3750 and target price of 1.3640
