FundamentalOverviewThe USD regained someground in the final part of last week and extended the gains this week, althoughwe haven’t got any meaningful catalyst for the move. Overall, we continue torange as the market is waiting for something new for the next sustained trend. Given that the “short USdollar” is now the most crowded trade, such quick unwinding moves are natural,and it will take something meaningful to lead the market to expect more ratecuts than currently priced in and weaken the greenback further.The Fed today is expectedto keep interest rates unchanged with Waller and likely Bowman voting for a 25bps cut. Fed Chair Powell is expected to reiterate data dependency and willlikely open the door for a cut in September conditional on benign data. On the CAD side, the underlyinginflation in Canada has been rising steadily since last December and continuesto hover near the upper bound of the 1-3% target range. The data out of Canadahas been improving recently and the latest employment report surprised to the upside.The BoC today is expected to keep interest rates unchanged and there’s basicallya 50/50 chance that we won’t see any more rate cuts this year.USDCADTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDCAD has been trading inside a range between the 1.3550 supportand the 1.3800 resistance. We’ve been seeing such rangebound price action inother markets as well because we haven’t got meaningful changes in the fundamentalsin the past couple of months. The market participants will likely continue toplay the range by buying at support and selling at resistance until we get abreakout on either side.USDCAD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, there’snot much we can glean from this timeframe as the only key levels are the lowerand upper bounds of the range. Nevertheless, a break above the resistanceshould see the buyers extending the rally into the next major swing level at1.3860.USDCAD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have a minor upward trendlinedefining the current bullish momentum. The buyers will likely continue to leanon it to keep pushing into new highs, while the sellers will look for a breaklower to increase the bearish bets into the lower bound of the range. The redlines define the average daily range for today. Upcoming CatalystsToday we have the US ADP, the US Q2 GDP,the BoC rate decision and the FOMC policy announcement. Tomorrow we get the USPCE price index, the US Jobless Claims, the US Employment Cost Index and theCanadian GDP. Finally, on Friday, we conclude the week with the US NFP reportand the US ISM Manufacturing PMI. investingLive.com (formerly ForexLive.com) is your new companion for the latest financial markets news and expert analysis This article was written by Giuseppe Dellamotta at investinglive.com.