FxWirePro: USD/CAD extends gains, scope for further upside

• USD/CAD strengthened on Wednesday  as greenback strengthened further following a batch of economic data and the minutes from the Federal Reserve's January meeting.

• The U.S. Dollar strengthened after a series of stronger-than-expected U.S. economic data, likely fueled by an AI investment boom.

• The United States Department of Commerce reported that non-defense capital goods orders excluding aircraft, a key gauge of business spending, rose 0.6%, above economists’ 0.4% forecast.

• The Federal Reserve reported that U.S. manufacturing output rose 0.6% last month the largest increase since February 2025—exceeding the 0.4% estimate after being flat in December.

• The U.S. Dollar was set for its third consecutive gain, marking its largest daily percentage increase since January 30.

•  Immediate resistance is located at 1.3752 (Higher BB), any close above will push the pair towards 1.3781(50%fib).

• Support is seen at 1.3654(38.2%fib) and break below could take the pair towards 1.3503(Lower BB).

Recommendation: Good to buy  around 1.3740 with stop loss of 1.33670 and target price of 1.3810