• USD/CAD initially gained but gave up some ground on Tuesday investors awaited Bank of Canada rate decision.
• The Bank of Canada is expected to make a 25bps rate cut on Wednesday, bringing its main policy rate to 3%. This move would bring the rate into the bank's estimated neutral range of 2.25-3.25%.
This will be the first time the Bank of Canada announces its rate decision and economic projections since the change in government in the U.S., Canada's largest trading partner.
• At GMT 16:08, the pair was trading up 0.08 percent at 1.4386
• Technical signals are bearish as RSI is at 23, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.3447(Jan 13th high), any close above will push the pair towards 1.4503 (23.6%fib).
• Support is seen at 1.4323(38.2%fib) and break below could take the pair towards 1.3281(Lower BB).
Recommendation: Good to buy around 1.4350, with stop loss of 1.4280 and target price of 1.4480,
