FxWirePro: USD/CAD bullish sentiment builds on dollar strength

• USD/CAD gained traction on Monday as the dollar strengthened ahead of the Washington-Beijing tariff deal deadline, while awaiting the U.S. inflation report.

• Trade talks drew attention as Trump’s August 12 deadline for a U.S.-China deal approached, especially on chip policy. Most market participants anticipate the trade truce will be extended.

•  U.S. consumer price data is scheduled for release on Tuesday, followed by producer price data on Thursday.

• Cooling inflation could strengthen expectations for a rate cut next month, but if evidence shows that President Trump’s tariffs are driving price increases, the Fed may hold rates steady for the time being.

• Canada faces a quiet week for economic data, with June wholesale trade and manufacturing sales reports on Friday being the main highlights.

• Immediate resistance is located at 1.3858(50%fib), any close above will push the pair towards 1.3902(Higher BB).

• Support is seen at 1.3728(38.2%fib) and break below could take the pair towards 1.3652(July 11th low).

Recommendation: Good to buy around 1.3760, with stop loss of 1.3650 and target price of 1.3860