FxWirePro: USD/CAD eases as dollar loses ground

• USD/CAD eased on Friday as concerns over worsening U.S.-China trade tensions, signs of stress in the U.S. banking sector, and expectations of further Fed rate cuts pressured the dollar.

• Shares in U.S. banks and the wider market tumbled   amid worries over bad loans at regional lenders.

•On trade front,Trump said his proposed 100% tariff on Chinese goods would be unsustainable and confirmed plans to meet President Xi Jinping in South Korea.

•On Thursday, China accused the U.S. of fueling panic over its rare earth export controls and rejected the White House’s request to ease the restrictions.

• Meanwhile, U.S. federal government shutdown has halted the release of key economic data, leaving investors with less clarity about the state of the economy.

•  Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.

•  Immediate resistance is located at 1.4080(23.6%fib), any close above will push the pair towards 1.4124 (Higher BB).

• Support is seen at 1.4000 (Psychological level) and break below could take the pair towards 1.3965 (38.2%fib).

Recommendation: Good to buy  around 1.4020, with stop loss of 1.3950 and target price of 1.4100