• USD/CAD edged higher on Friday as the dollar strengthened following data indicating an increase in U.S. consumer spending for July.
• The U.S. PCE price index, the Federal Reserve's preferred inflation measure, rose 0.2% in July, according to data released by the Commerce Department on Friday.
•Consumer spending, which represents over two-thirds of U.S. economic activity, increased by 0.5% last month.
• The data paves the way for the Fed to potentially begin easing monetary policy in September.
• Immediate resistance is located at 1.3509(38.2%fib), any close above will push the pair towards 1.3555(50%fib).
• Support is seen at 1.3450 (23.6%fib) and break below could take the pair towards 1.3424(Lower BB).
Recommendation: Good to buy around 1.3470, with stop loss of 1.3430 and target price of 1.3540
