During yesterday’s trading session USD/CAD traded within the range of 1.0836-1.0882 and closed at 1.0850.
At 11:59 GMT today USD/CAD was gaining 0.18% for the day to trade at 1.0863. The pair touched a daily high at 1.0863 at 11:48 GMT.
Fundamental view
The Federal Open Market Committee (FOMC) will probably keep its benchmark interest rate unchanged at a record-low 0.25% for a 43rd consecutive meeting. In addition, the FOMC members will probably reduce the pace of monthly asset purchases by another $10 billion to $35 billion, according to the median estimate by experts.
The FOMC meets eight times each year to review economic and financial conditions and decide on monetary policy. Monetary policy refers to the actions taken that affect the availability and cost of money and credit. At these meetings, short-term interest rate targets are determined. Using economic indicators such as the GDP Deflator, Consumer Price Index(CPI) and the Producer Price Indexes (PPI), the Fed will establish interest rate targets intended to keep the economy in balance. By moving interest rate targets up or down, the Fed attempts to achieve maximum employment, stable prices and stable economic growth. The Fed will raise interest rate, or act hawkish, to decrease inflation. Conversely, the Fed will decrease rates, or act dovish, to accelerate inflation and spur economic growth.
Investors and traders keep a close eye on the FOMC’s rate decisions. After each of the eight FOMC meetings, an announcement is made regarding the Fed’s decision to increase, decrease or maintain key interest rates.
The FOMC will announce its interest rate decision and pace of monthly asset purchases at 18:00 GMT. In case, the central bank’s members cut the monthly asset purchases by $10 billion (in line with expectations), this will certainly boost greenback’s demand.
Technical view
According to Binary Tribune’s daily analysis, in case USD/CAD manages to breach the first resistance level at 1.0875, it will probably continue up to test 1.0888. In case the second key resistance is broken, the pair will probably attempt to advance to 1.0901.
If USD/CAD manages to breach the first key support at 1.0849, it will probably continue to slide and test 1.0836. With this second key support broken, the movement to the downside will probably continue to 1.0823.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
