FXStreet notes that USD/CAD has continued higher after its recent break above 1.2145. Analysts at Credit Suisse look for a slightly deeper correction going into the FOMC, with resistance at 1.2203/05, then 1.2253/70, where the pair is set to find a solid cap.

“We look for a break above 1.2203/05 and a move to 1.2253/70, which includes the important 55-day average, the 38.2% retracement of the fall from April and the ‘measured base objective’. We would look for a cap here post the FOMC and then for the medium-term downtrend to reassert itself.” 

“Near-term support moves to 1.2129/27. In contrast, a break below 1.2058/56 would quickly turn our bias back lower and negate the base, with a direct close below 1.2012/00 reasserting the broader downtrend."