• USD/CAD strengthened on Thursday as slightly higher than expected U.S. inflation data and a jump in weekly jobless claims did not diminish expectations the Fed will cut rates in November.
• U.S. consumer prices rose (CPI) slightly more than expected in September amid higher food costs, but the annual increase in inflation was the smallest in more than 3-1/2 years..
• The Labor Department said the consumer price index increased 0.2% last month after gaining 0.2% in August, slightly above expectations of economists polled for a 0.1% rise.
• Technical signals are strongly bullish as RSI is at 68, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.3777(23.6%fib), any close above will push the pair towards 1.3794(Higher BB).
• Support is seen at 1.3710(38.2%fib) and break below could take the pair towards 1.3647 (50%fib).
Recommendation: Good to buy around 1.3750 , with stop loss of 1.3600 and target price of 1.3800
