USD/CAD Buyers Cautious Ahead of BoC and FOMC MeetingsMarket Overview
The Federal Reserve is widely expected to keep interest rates unchanged. Meanwhile, the Bank of Canada is projected to reduce its benchmark interest rate by 25 basis points, bringing it down to 3.00%. The pace of easing from the BoC remains a focal point, as a more aggressive rate-cut cycle in Canada could further widen the interest rate differential in favor of the USD.
Technical Analysis
USD/CAD remains within a broad consolidation range on the 4-hour chart, yet the breakout of a symmetrical triangle pattern to the upside suggests a bullish bias in the near term. The pair is currently testing resistance at 1.44152, a level that could serve as a key pivot for further gains.
If buyers manage to push beyond this level, the next upside targets lie at 1.44279, 1.44440, and 1.44618, aligning with key Fibonacci extension zones. However, a lack of sustained buying pressure at these levels may result in profit-taking, leading to short-term retracements.
Conversely, a rejection at current resistance could encourage sellers to regain control. A drop below 1.43974 would indicate weakening bullish momentum, opening the door for deeper corrections towards 1.43686. A decisive break below this level would invalidate the bullish breakout and shift the focus back towards the broader consolidation range.
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