FxWirePro:USD/CAD struggles to find footing, downside risk persists

• USD/CAD edged higher on Wednesday but gains were limited  as investors assessed the developments around a ceasefire between Iran and Israel..

• Markets reacted calmly to the ceasefire announcement between Israel and Iran, taking the de-escalation of geopolitical tensions largely in stride.

•On Tuesday, Powell emphasized that a rate cut decision can only be taken after observing the affect of tariffs, inflation and weakness in the labour market.

•    Investors are also closely watching the second day of Federal Reserve Chair Jerome Powell’s congressional testimony, set to begin at 14:00 GMT.

  • U.S. GDP and jobless claims data are set for release on Thursday, followed by the key Personal Consumption Expenditures (PCE) report on Friday, with traders closely watching both for clues on the Federal Reserve’s next policy moves.

• Immediate resistance is located at 1.3798(Higher BB), any close above will push the pair towards 1.3829(50%fib).

• Support is seen at 1.3697(38.2%fib) and break below could take the pair towards 1.3582 (Lower BB).

Recommendation: Good to sell around 1.3740, with stop loss of 1.3820 and target price of 1.3650