FxWirePro: USD/CAD dips below lower range, bearish bias increases

• USD/CAD edged lower on Friday as   investors assessed Canadian gross domestic product data that reinforced expectations of the Bank of Canada implementing an interest-rate cut next month.

• Canada's economy grew as anticipated at an annualized rate of 1% in the third quarter, according to data released on Friday. This growth was driven by household and government spending, although it was partly offset by declines in business investments and exports.

•For September, gross domestic product (GDP) increased by 0.1%, a slower pace than expected, as reported by Statistics Canada. A preliminary estimate for October also indicated a modest 0.1% growth.

•  A daily close below  38.2%fib will further improve the technical outlook, and open the possibility of a drop towards 1.3900 level.

•  Immediate resistance is located at 1.4045(Daily high), any close above will push the pair towards 1.4091(23.6%fib).

• Support is seen at 1.3966 (38.2%fib) and break below could take the pair towards 1.3926(Nov 26th low).

Recommendation: Good to sell  around 1.4010 with stop loss of 1.4150 and target price of 1.3920