• USD/CAD gained upward traction on Thursday as the latest U.S. economic data reinforced expectations of a 25 basis point rate cut next week.
• U.S. initial jobless claims rose 2,000 to a seasonally adjusted 230,000 for the week ended Sept. 7, data showed, in line with expectations.
• U.S. producer prices increased slightly more than expected in August to 0.2% as services costs rose, but the trend remained consistent with ebbing inflation.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3615(50%fib), any close above will push the pair towards 1.3661(61.8%fib).
• Support is seen at 1.3572 (38.2%fib) and break below could take the pair towards 1.3500(Psychological level).
Recommendation: Good to buy around 1.3590, with stop loss of 1.3530 and target price of 1.3660
