• USD/CAD initially gained on Tuesday but gave up ground investors awaited the Bank of Canada's policy decision later this week
• The BoC is expected to cut the policy rate by half a percentage point on Wednesday, following a sharp rise in the unemployment rate reported in Friday's jobs data.
• The BoC has cut rates by 125 bps since June, nearly twice as much as its southern neighbor, the U.S. Federal Reserve.
• Investors also looked ahead to key U.S. consumer price index (CPI) data, due on Wednesday, that could possibly influence the Federal Reserve's interest rate decision next week.
• Immediate resistance is located at 1.4196(23.6%fib), any close above will push the pair towards 1.4234(Higher BB).
• Support is seen at 1.4094 (Dec 9th low) and break below could take the pair towards 1.4069(38.2%fib).
Recommendation: Good to buy around 1.4140 with stop loss of 1.4000 and target price of 1.4230
