All Federal Reserve officials are in agreement on targeting a 2% inflation rate for the USDCAD currency pair at 1.35329. However, there are differing opinions and disagreements when it comes to determining the next actions to take.

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• Fed officials unanimously aim for the 2% inflation target, but divisions arise on the next steps.

The pair currently trades last at 1.35329.

The previous day high was 1.3502 while the previous day low was 1.3439. The daily 38.2% Fib levels comes at 1.3478, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3463, expected to provide support.

USD/CAD climbs above 1.3500 and refreshes a three-month high at 1.3539 after the Federal Open Market Committee (FOMC) revealed its July monetary policy minutes, offering split views amongst Fed board members while committing to its goal of inflation of 2%. The USD/CAD is trading at around 1.3520/40 amidst a volatile session, with more than 0.20% gains.

The minutes highlighted a unanimous commitment among all Federal Reserve officials to their goal of reducing inflation to the targeted 2%. Concurrently, most participants evaluated that the potential for elevated inflation risks would necessitate additional tightening measures.

However, a division within the Fed board became evident regarding monetary policy, as a “few” members advocated for maintaining the existing interest rates. Among them, Atlanta’s Fed President Raphael Bostic consistently voiced his stance in favor of unchanged rates. Recently, Philadelphia’s Fed President Patrick Harker echoed some of Bostic’s comments as it turned more neutral.

Despite the economy’s demonstrated resilience, lingering concerns remain about potential downward impacts on economic activity and the potential risks associated with a rise in the unemployment rate.

Federal Reserve officials agreed that forthcoming rate decisions would be based on a comprehensive assessment of incoming data while adopting a cautious approach in the upcoming months.

Amid these developments, the greenback is recovering some ground, as shown by the US Dollar Index (DXY) gaining 0.29%, at 103.497, underpinned by higher US Treasury bond yields.

Following the data release, the USD/CAD edged towards its daily high of 1.3545, followed by a dip towards the R1 pivot at 1.3520, before edging towards the current exchange rate. The USD/CAD is trading back above the 200-day Moving Average (DMA), which sits at 1.3448, portraying a bullish bias.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3535 at the time of writing. Pair opened at 1.3498 and is trading with a change of 0.27 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.331, 50 SMA 1.3271, 100 SMA @ 1.3384 and 200 SMA @ 1.3451.

The previous day high was 1.3502 while the previous day low was 1.3439. The daily 38.2% Fib levels comes at 1.3478, expected to provide support. Similarly, the daily 61.8% fib level is at 1.3463, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.3457, 1.3417, 1.3395
• Pivot resistance is noted at 1.352, 1.3542, 1.3582

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