FxWirePro: USD/CAD slips as traders await Bank of Canada rate decision

• USD/CAD slipped lower on Tuesday  as  Canadian dollar strengthened ahead  Bank of Canada rate decision .

• The Bank of Canada is widely expected to cut interest rates by 25 basis points on Wednesday, which would mark its second straight reduction as policymakers aim to support a slowing economy.

•Recent data has shown signs of softening consumer spending and cooling inflation, prompting expectations that the central bank will continue its easing cycle.

• The U.S. Federal Reserve, meanwhile, is likely to cut rates when it concludes its two day meeting on Wednesday and traders will watch for any new clues about how policymakers view the economy.

•  Technical highlight upside downside risk for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.

•  Immediate resistance is located at 1.3838(SMA 20), any close above will push the pair towards 1.4057(23.6%fib).

• Support is seen at 1.3936 (38.2%fib) and break below could take the pair towards 1.3900(Lower BB).

Recommendation: Be on sidelines