FxWirePro: USD/CAD edges higher but downtrend likely to resume

• USD/CAD edged higher on Friday  as markets absorbed U.S. CPI and Canadian GDP data.

• Canada's economy shrank by 0.1% in April, driven by a 0.6% drop in goods-producing industries, which make up a quarter of total GDP, Statistics Canada reported Friday..

• U.S. consumer spending unexpectedly declined in May, as the impact of pre-tariff stockpiling—particularly of goods like motor vehicles—faded, while monthly inflation saw a moderate rise, according to the Commerce Department.

• This week’s economic data, including soft US GDP figures and surge in jobless claims, has reinforced market bets that the US central bank may ease monetary policy later this year.

 • At GMT 15:10, the dollar was up 0.12% to 1.3658 against the Canadian dollar.

•   Technicals are favoring bearish sentiment as RSI is at 42 and the pair is trading below  5, 9 & 11-DMA’s.

. • Immediate resistance is located at 1.3720(38.2%fib), any close above will push the pair towards 1.3780(Higher BB).

• Support is seen at 1.3592(Lower BB) and break below could take the pair towards 1.3551(23.6%fib).

Recommendation: Good to sell around 1.3660, with stop loss of 1.3730 and target price of 1.3560