FxWirePro: USD/CAD extend gains, eyes 1.4000 level

• USD/CAD advanced on Thursday as stronger-than-expected U.S. economic data bolstered the dollar.

• U.S. Q2 GDP rose faster than expected, led by stronger consumer spending and weaker imports, though growth has since eased. Second quarter gross domestic product increased at an upwardly revised 3.8% annualized rate versus initial reports of a 3.3% pace..

•  New orders for major U.S.-manufactured capital goods rose unexpectedly in August, while a drop in shipments indicated that business spending on equipment is likely growing at a moderate pace this quarter..

• While,the Labor Department reported on Thursday that initial claims for U.S. unemployment benefits declined by 14,000, reaching a seasonally adjusted total of 218,000 for the week ending September 20..

• Looking ahead, investors will closely watch Friday’s domestic GDP figures and the U.S. Personal Consumption Expenditures (PCE) index for indications of potential further interest rate cuts.

• Immediate resistance is located at 1.3952(Higher BB), any close above will push the pair towards 1.3992(38.2%fib).

• Support is seen at 1.3910(50%fib) and break below could take the pair towards 1.3830(61.8%fib).

Recommendation: Good to buy around 1.3910, with stop loss of 1.3860 and target price of 1.4000