USD/CAD Faces Make-or-Break Resistance Ahead of Fed Decision

The Canadian dollar has made a sharp recovery from its monthly low and is now testing a major resistance confluence ahead of the Federal Reserve's interest rate decision.

This pivotal point marks the upper end of the September range, where buyers must prove they can sustain their advance to fuel a larger reversal in the technical picture. With the Fed's announcement just hours away, the reaction at this threshold could determine whether the recovery develops into a more significant trend or begins to unravel.

A topside breach above 1.3942/55 would be needed to suggest a more significant low is in place and validate a breakout of the late-June downtrend. Subsequent resistance objectives are eyed at the July low and the 50% retracement of the June decline at 1.3990/91 and the 61.8% retracement at 1.4051.