USD/CAD moves lower near 1.3575 ahead of Fed meeting
The USD/CAD currency pair is trading around 1.3575 as markets wait for the U.S. Federal Reserve’s decision, which will be announced on Wednesday. Most traders believe the Fed will keep interest rates unchanged. This is because the Fed wants to watch how new U.S. policies affect the economy and inflation before making any changes.
At the same time, the U.S. dollar is steady, and people are also watching trade discussions between the U.S. and Canada. These talks could impact the Canadian dollar in the coming weeks.
From a technical view, USD/CAD is close to its lowest level in eight months, near 1.3540. Price charts and indicators show that the pair is likely to keep falling. If the price drops below 1.3540, it could move toward 1.3500, and possibly even 1.3420 — a level not seen since September.
However, if the price goes above 1.3820, which was the high in May, it might change direction and rise again. In that case, it could move toward 1.3920 or even 1.4000.
Impact: USD/CAD might fall further if the Fed holds rates and the Canadian dollar stays strong. But any surprise from the Fed could lead to a quick bounce upward.