• USD/CAD strengthened on Friday as Canadian dollar was weighed down by falling oil prices and investor expectations of a significant interest rate cut from the Bank of Canada.
• The price of oil , one of Canada's major exports, fell 1.4% to $69.70 a barrel as China's economic growth slowed and threats to supply abated in the Middle East.r.
• Investors see a roughly 90% chance the BoC will cut its benchmark interest rate by half a percentage point at a policy decision on Wednesday, swaps market data showed..
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3820(23.6%fib), any close above will push the pair towards 1.3860(Higher BB).
• Support is seen at 1.3787 (Daily low) and break below could take the pair towards 1.3752 (38.2%fib).
Recommendation: Good to buy around 1.3800, with stop loss of 1.3720, and target price of 1.3880
