• USD/CAD edged lower on Monday as the dollar weakened ahead of key U.S. economic data that could offer clues on the Federal Reserve’s policy outlook.
• Investors are looking ahead to data on job openings, private payrolls, and the ISM manufacturing PMI before Friday’s employment report, which will serve as a key measure of the economy’s momentum.
• The dollar’s pullback also came as the risk of a government shutdown loomed, with funding set to expire at midnight on Tuesday.
•President Donald Trump is scheduled to meet with congressional leaders at the White House on Monday in a final effort to resolve the impasse.
• Technical highlight upside risks for USD/CAD, with momentum studies, 9, 11 and 14 DMAs tracking north.
• Immediate resistance is located at 1.3945(Higher BB), any close above will push the pair towards 1.3971(38.2%fib).
• Support is seen at 1.3886 (50%fib) and break below could take the pair towards 1.3831(SMA 20).
Recommendation: Good to buy around 1.3900, with stop loss of 1.3830 and target price of 1.3970
