• USD/CAD dipped on Wednesday as the Canadian dollar strengthened following the Bank of Canada’s 50 basis point cut to its benchmark rate.
• The Bank of Canada lowered its key policy rate by 50 basis points to 3.25% on Wednesday to tackle slowing growth.
• The 50-basis-point cut is the first consecutive large reduction by the central bank since the pandemic.
• At GMT 18:52, The dollar was trading down 0.17% against Canadian dollar at 1.4165 .
• Immediate resistance is located at 1.4101(23.6%fib), any close above will push the pair towards 1.4157(Higher BB).
• Support is seen at 1.3984 (38.2%fib) and break below could take the pair towards 1.3890(50%fib).
Recommendation: Good to buy around 1.4120 with stop loss of 1.4050 and target price of 1.4220
