FxWirePro: USD/CAD downside pressure builds, key support level in focus

• USD/CAD extended decline on Thursday    as dollar dipped as traders increased expectations for Fed rate cuts after fresh U.S. data..

• Markets are widely anticipating a rate cut next week, with investors focused on guidance for the policy path ahead. Traders see almost a 90% chance of a 25-basis-point reduction..

• U.S. data on Thursday showed new applications for unemployment benefits fell to their lowest level in more than three years last week, easing concerns about a sharp slowdown in labor market conditions..

• Meanwhile, economic activity in Canada contracted in November for the first time in six months, as a drop in employment dragged the Ivey Purchasing Managers Index lower, data on Thursday showed..

• The seasonally adjusted index fell to 48.4 in November from 52.4 in October, slipping below the 50 mark for the first time since May.

•  Immediate resistance is located at 1.3980(Daily high), any close above will push the pair towards 1.4019 (38.2%fib).

• Support is seen at 1.3930(50%fb) and break below could take the pair towards 1.3907(Lower BB).

Recommendation: Good to sell  around 1.3960, with stop loss of 1.4080  and target price of 1.3860