USD/CAD Tests Key Resistance Ahead of Fed Rate Decision
The Canadian dollar's recent recovery has brought it back to the upper bounds of its September range, where it is now testing pivotal resistance. The Fed rate decision is set to take place soon, and the reaction at this threshold could determine whether the recovery develops into a larger reversal or begins to unravel.
USD/CAD has rebounded sharply from its monthly low, but buyers still need a confirmed breach higher to strengthen their case for a larger reversal. Holding above the monthly open would keep the immediate advance viable, while a deeper pullback would refocus attention on August support.
The near-term technical structure remains constructive, but the key resistance level at 1.3942/55 is a confluence of several important technical levels, including the monthly opening range high and the 38.2% retracement of the yearly range.