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• USD/CAD dipped on Tuesday as dollar dipped investors monitored the development of China's trade talks.
• Lutnick, Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer met with Chinese colleagues in London.
• Any breakthrough in the discussions is expected to bring comfort to investors, given that Trump's frequently shifting tariff pronouncements and swings in Sino-US relations have damaged the two economies, disrupted supply networks, and threaten to stifle global growth.
• Meanwhile, attention also turned to Wednesday's US inflation data, which may influence Fed rate rate cut expectation. The central bank remains in a blackout period before its June 18 policy announcement.
. •At GMT 14:42, the pair was trading down 0.06 percent at 1.3670
• Immediate resistance is located at 1.3791(38.2%fib), any close above will push the pair towards 1.3842(May 30th high).
• Support is seen at 1.3661(23.6%fib) and breakbelow could take the pair towards 1.3585(Lower BB).
Recommendation: Good to sell around 1.3680, with stop loss of 1.3750 and target price of 1.3600
