FxWirePro: USD/CAD extends fall, eyes 1.3700 level

• USD/CAD dipped on Thursday   as markets assessed ongoing U.S. policy uncertainty, while expectations of stronger fiscal spending boosted confidence in Canada’s economic outlook.

• The Bank of Canada has hinted that its easing cycle may be ending after cutting rates by 2.75 percentage points since June 2024, with markets expecting the benchmark rate to remain unchanged at 2.25% next week and throughout 2026.

•Prime Minister Mark Carney has pledged billions in infrastructure and productivity investments, while renewed verbal attacks from Trump are driving stronger public support for Carney in Canada.

•The price of oil  , one of Canada's major exports, fell 2.2% to $59.26 a barrel as investors assessed the supply-demand outlook.

•  Immediate resistance is located at 1.3818(SMA 20), any close above will push the pair towards 1.3842(50%fib).

• Support is seen at 1.3709(38.2%fib) and break below could take the pair towards 1.3661(Lower BB).

Recommendation: Good to sell  around 1.3790, with stop loss of 1.3850 and target price of 1.3700