FxWirePro: USD/CAD edges lower but bullish outlook persists

• USD/CAD edged lower on Thursday as investors digested U.S. inflation data that came broadly in line with expectations.

• U.S. consumer prices rose 0.4% in August, the largest monthly increase since January, following a 0.2% gain in July, the Labor Department reported.

• The CPI was lifted by a 0.4% rise in shelter costs, including rents and hotel stays. Food prices climbed 0.5%, with grocery prices jumping 0.6%.

• Annual CPI rose 2.9% in the 12 months through August, the largest increase since January, following a 2.7% gain in July.

 • In a separate report, data showed initial claims for state unemployment benefits rose 27,000 to a seasonally adjusted 263,000 for the week ended September 6, the highest level since October 2021

• Immediate resistance is located at 1.3887(50%fib), any close above will push the pair towards 1.3937(Higher BB).

• Support is seen at 1.3824(SMA 20) and break below could take the pair towards 1.3748(38.2%fib).

Recommendation: Good to buy around 1.3830, with stop loss of 1.3750 and target price of 1.3900