• USD/CAD dipped on Tuesday as Canadian dollar firmeds as oil prices fell and investors awaited an interest rate decision this week by the Federal Reserve.
• The threshold for a Federal Reserve rate hike on Wednesday appears higher than implied by futures markets, as easing inflation and a renewed pause in U.S.-Iran hostilities have reduced the urgency for tighter monetary policy.
•Investors will also focus on Wednesday's release of the Bank of Canada's latest meeting minutes after the central bank kept its key interest rate steady at 2.25% and projected stronger economic growth later this year as inflation moderates..
• Investors will also be watching Friday's Canadian GDP report for May, which is expected to show the economy expanded by 0.2% from the previous month.
• Immediate resistance is located at 1.4126(SMA20), any close above will push the pair towards 1.4262(23.6%fib).
• Support is seen at 1.4077(38.2%fib) and break below could take the pair towards 1.3977(Lower BB).
Recommendation: Good to buy around 1.4100 with stop loss of 1.4040 and target price of 1.4200
