• USD/CAD dipped on Tuesday as positive Canadian manufacturing data and higher oil prices outweighed stronger greenback.
• Canada’s manufacturing PMI increased to 50.4 in September 2024, up from 49.5 in August, marking the first improvement in operating conditions since April 2023.
•Oil prices surged by about 3% on Tuesday following reports that Iran was poised to launch a missile attack on Israel.
• USD/CAD was trading 0.23% down at 1.3493 after hitting daily high at 1.3541
• Technical signals are strongly bearish as RSI is at 36, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.3543 (50%fib), any close above will push the pair towards 1.3570 ( Sep 6th high)
• Strong support is seen at 1.3490 (38.2%fib) and break below could take the pair towards 1.3451(Lower BB).
Recommendation: Good to sell around 1.3500, with stop loss of 1.3580 and target price of 1.3410
