• USD/CAD trimmed losses from earlier declines on Monday as market reaction to Moody’s U.S. ratings downgrade began to fade.
• Late Friday, Moody's Investors Service downgraded the United States’ sovereign credit rating from the top-tier 'Aaa,' highlighting concerns over the country’s deteriorating fiscal outlook.
• Barring the release of the Conference Board’s Leading Economic Index, the macroeconomic calendar remained largely uneventful.
• Federal Reserve officials, meanwhile, maintained a cautious tone, reiterating their 'wait and see' approach as they continue to assess incoming data.
• Immediate resistance is located at 1.3972(38.2%fib), any close above will push the pair towards 1.4109(23.6%fib).
• Support is seen at 1.3928(50%fib) and break below could take the pair towards 1.38380(61.8%fib).
Recommendation: Good to buy around 1.3930, with stop loss of 1.3860 and target price of 1.4000
