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FxWirePro: USD/CAD buoyancy keeps consolidation intact, consider buying on dips

• USD/CAD initially dipped but recovered ground on Monday  as dollar regained its earlier lost ground ahead this week's U.S. inflation data.

• U.S. inflation data this week could cement a December interest rate cut by the Federal Reserve at its meeting next week.

• Markets now price an 85% chance of a quarter-point cut at the Fed's Dec. 17-18 meeting, up from 68% before the jobs report, with an additional three cuts expected next year.

• At GMT 21:03 the pair was up 0.09% at 1.4170, marking its highest level since 26th November.

•  Immediate resistance is located at 1.4180 (23.6%fib), any close above will push the pair towards 1.4201(Higher BB).

• Support is seen at 1.4099(Daily low) and break below could take the pair towards 1.4045(38.2%fib).

Recommendation: Good to buy  around 1.4160, with stop loss of 1.4050 and target price of 1.4260

 

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