USD/CAD is falling before the FOMC interest rate decision today. The pair is currently trading at 1.3165 and appears to move further lower. The pair’s immediate support level is at 1.3125 while the 1.3100 is likely to act as a stiff resistance area. The intraday resistance is at 1.3172 another resistance is at 1.3215 level.
The RSI is at 45 and revealing further downwards pressure. The SMA-21 is currently indicating a support area at 1.3143 and the SMA-50 is showing a resistance area at 1.3290. The mid-Bollinger band is at 1.3132 while the lower Bollinger Band shows the support area way below at 1.3000. The price pattern in the 4-hourly chart is equally bearish and supports sell entries. A relatively safer sell entry would be at 1.3175 with a target of 50 to 60 pips. A decent stop-loss for this trade would be at 1.3215.
Investors are eyes at today’s FOMC meeting minutes, a dovish policy on stimulus plan could further weaken the US dollar and the send the pair lower towards 1.3020/1.3000.