• The USD/CAD pair inched higher on Wednesday as the dollar firmed on expectations of a U.S. interest rate increase in June.
   
• The Fed is expected to hold interest rates steady as it pauses to parse more economic data, but it may hint it is on track for an increase in June.
   
• On the data front, the pace of growth in the U.S. economy's service sector increased in April led by a jump in new orders, according to an industry report released on Wednesday.
   
• The Institute for Supply Management (ISM) said its index of non-manufacturing activity rose to 57.5 from 55.2 the month before.
   
• The currency pair is trading around 1.3717 levels and it is set to advance further towards 1.3750 and 1.3800 in the short term.
   
• To the upside, the strong resistance can be seen at 1.3757, a break above will take the pair towards next resistance level at 1.3800.
   
• To the downside immediate support can be seen at 1.3705 levels, a break below will open the door towards next level at 1.3646.
  
  Resistance Levels
  
  R1: 1.3731 (50% Retracement level)
  
  R2: 1.3757 (38.2% Retracement level)
  
  R3: 1.3800 (23.6% Retracement level)
  
  Support Levels
  
  S1: 1.3705 (61.8% Retracement level)
  
  S2: 1.3646 (May 2nd lows)
  
  S3: 1.3600 (Psychological levels)