FxWirePro: USD/CAD moves lower after BoC holds key rate unchanged

• USD/CAD dipped on Wednesday after the Bank of Canada kept its key policy rate unchanged as expectations.

•The Bank of Canada kept its key policy rate unchanged at 2.25% on Wednesday, as widely expected, while Governor Tiff Macklem said policymakers were prepared to raise interest rates multiple times if inflation remained elevated.

• Macklem said the conflict had heightened inflation risks, with rising oil prices adding pressure and uncertainty over when energy costs might ease..

• Following Macklem's remarks, money markets priced in a 25-basis-point rate hike by December and around three additional quarter-point increases next year.

•The price of oil, one of Canada's major exports, held near one-month highs as traders weighed the risk of supply disruptions after overnight strikes by the U.S. and Iran.

•  Immediate resistance is located at 1.3859(50%fib), any close above will push the pair towards 1.3880(SMA 20.).

• Support is seen at 1.3760(Lower BB) and break below could take the pair towards 1.3686(38.2%fib).

Recommendation: Good to sell around 1.3850 with stop loss of 1.3900 and target price of 1.3760