• USD/CAD saw a slight recovery on Wednesday as the Canadian dollar took a breather after its rally, driven by optimism about China's stimulus measures.
• The Canadian dollar rallied on Tuesday following China's significant stimulus package, but investors are skeptical about whether these measures can deliver a sustainable boost to China’s economy.
• USD/CAD was trading 0.23% up at 1.3462 after hitting lowest level since March 8th at 1.3422 overnight .
• Technical signals are strongly bearish as RSI is at 36, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.3490 (38.2%fib), any close above will push the pair towards 1.3538 ( Sep 24th high)
• Strong support is seen at 1.3422 (23.6%fib) and break below could take the pair towards 1.3395(Lower BB).
Recommendation: Good to sell around 1.3490, with stop loss of 1.3580 and target price of 1.3380
