FxWirePro: USD/CAD maintains bullish bias with focus on 1.3900 level

• USD/CAD held steady  on Tuesday    as investors digested remarks from several Federal Reserve officials, including Chair Jerome Powell.

• Powell reiterated that the Fed faces the delicate challenge of balancing inflation risks against signs of labor market softness. His remarks may prove pivotal in shaping expectations, with equities already buoyed by last week’s rate cut.

•  New Fed Governor Stephen Miran on Monday pushed for sharp rate cuts, while three other policymakers emphasized caution over inflation.

• Markets see a 92% probability of a 25 bps cut at the Fed’s October meeting, with an 8% chance of no change.

•  At GMT 18:30, the US dollar was up  0.18% to 1.3844 against the Canada dollar.

• Immediate resistance is located at 1.3860(50%fib), any close above will push the pair towards 1.3888(Higher BB).

• Support is seen at 1.3799(SMA 20) and break below could take the pair towards 1.3732(38.2%fib).

Recommendation: Good to buy around 1.3830, with stop loss of 1.3740 and target price of 1.3900