FxWirePro: USD/CAD buoyancy keeps consolidation intact, consider buying on dips

• USD/CAD surged on Tuesday as the commodity-linked Canadian dollar faced selling pressure, driven by declines in prices of commodities like copper and crude oil.

• Copper prices fell to a two-week low, impacted by the weak Chinese economy, while gold prices slid to their lowest level in over a week on Tuesday.

• On the data front, Canadian manufacturing activity increased to a five-month high of 49.5 in August, with production and new orders decreasing at a slower rate.

• At GMT 15:46, the pair was up 0.43% at 1.3458, marking its highest level since August 23rd.

•  Immediate resistance is located at 1.3556(38.2%fib), any close above will push the pair towards 1.3621(50%fib).

• Support is seen at 1.3484(23.6%fib) and break below could take the pair towards 1.3449(August 28th low).

Recommendation: Good to buy  around 1.3600, with stop loss of 1.3530 and target price of 1.3660