FxWirePro: USD/CAD bullish outlook with scope to target 1.3800

• 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