Ella 
USD/CAD maintained its bullish bias for the second day in a row on Wednesday despite a lack of bullish conviction and still found resistance around the multi-day highs hit the previous day around 1.3615-1.3620. USD/CAD is currently trading around the 1.3600 round figure as traders eagerly await the outcome of the high-profile two-day Federal Reserve monetary policy meeting.
The Federal Reserve (Fed) will announce an interest rate decision at the end of the U.S. session, and the market generally expects the Fed to remain on hold. Therefore, the focus will remain on the accompanying monetary policy statement and the latest economic forecasts, especially the so-called “dot plot”. Markets will be closely watching the above points as well as comments from Fed Chairman Jerome Powell at the post-meeting press conference for clues on the near-term policy outlook, which will impact the US dollar (USD) price dynamics and provide fresh insights into USD/CAD directional momentum.
Unsure about the timing of when the Fed will begin easing policy ahead of key central bank event risks failed to help the greenback build on its rebound from the lows following the overnight US inflation release and acted as a tailwind for USD/CAD. However, despite signs of a drawdown in U.S. crude stockpiles, crude oil prices fell to a six-month low on concerns about oversupply, which still restrained the decline in crude oil prices. This in turn weighs on the commodity-linked ruble and continues to support USD/CAD maintaining its bearish bias.
That said, the above-mentioned mixed fundamentals require investors to remain cautious before making aggressive directional bets on USD/CAD. In addition, USD/CAD has remained range-bound over the past week or so, indicating that traders are hesitant about USD/CAD’s near-term direction.
