USD/CAD Price Analysis: Bears ready to pounce depending on the Fed

• USD/CAD bears chipped away at the 1.3305 structure before bulls moved in to test bears at the 1.3350s.
• The Fed will determine when the price heads towards 1.3320s and then the 1.3150s or, on the upside, we have 1.3380s that guard the 1.3450/80s.

As per the prior analysis, USD/CAD Price Analysis: Bears seek a break of key support while on the front side of bear trend, bulls have moved in to test the critical resistance area near the 1.3350s ahead of the Federal Reserve’s interest rate decision.

For the US Dollar, this event will be important and it could catch a bid if the outcome is far more hawkish than what would be otherwise anticipated.  A pushback against the sentiment of a pivot could stir up some demand for the greenback which sees a higher USD/CAD but anything to the contrary would likely see 1.3300 come under pressure with the price already jammed in on the front side of the bearish trendline following a failed breakout. 

USD/CAD, prior analysis daily charts

Zoomed in …

It was stated, that with the breakout failure, the bears remained in control. 

USD/CAD H1 chart

However, in the Asian session, when the analysis was drawn on the above charts, it was also explained that the bulls could be seeking a move to test the commitments of the bears again following the failed breakout with the 50% mean reversion resistance eyed.

USD/CAD update

The bulls moved in as anticipated and now the price will be determined by the Federal Reserve event. In this regard, we have the levels marked as follows:

We have already seen the bears chip away at the 1.3305 structure, and this is technically already broken, exposing the 1.3320s and then the 1.3150s. On the upside, we have 1.3380s that guard the 1.3450/80s.