• USD/CAD eased on Wednesday as greenback dipped as Powell's comments boosted rate cut bets and a stronger risk appetite robbed the greenback of some of its luster.
• Fed Chair Powell in a Tuesday speech signaled the possibility of rate cuts, noting that the U.S. labor market remains stuck in a period of low hiring and limited layoffs.
•Fed Chair Powell said that, despite the absence of official economic data due to the government shutdown, policymakers are still able to assess the economic outlook—for now
•Traders are now pricing in a quarter-point cut at the Fed's October 28-29 meeting, followed by another reduction in December.
•Meanwhile, the Bank of Canada is set to announce its rate decision on October 29, with markets currently pricing in a 60% chance of a 25-basis-point cut. However, those odds have fallen sharply following Friday’s surprisingly strong employment report.
• Immediate resistance is located at 1.4080(23.6%fib), any close above will push the pair towards 1.4115(Higher BB).
• Support is seen at 1.3982 (38.2%fib) and break below could take the pair towards 1.3925 (SMA 20).
Recommendation: Good to buy around 1.4010, with stop loss of 1.3950 and target price of 1.4100
