• USD/CAD strengthened on Wednesday as dollar rebounded ahead of the release of key economic data .
• Traders will be focused on upcoming U.S. inflation data to help determine the Fed's policy trajectory and the direction of USD/CAD price action.
• Markets are pricing in about a 63.5% chance of a 25-basis points U.S. rate cut in September and a 36.5% chance of a 50-bps cut, according to the CME FedWatch tool.
• Immediate resistance is located at 1.3496 (38.2%fib), any close above will push the pair towards 1.3554(50%fib).
• Support is seen at 1.3440(23.6%fib) and break below could take the pair towards 1.3424(Lower BB).
Recommendation: Good to buy around 1.3460, with stop loss of 1.3400 and target price of 1.3550
