• USD/CAD dipped on Thursday as loonie gained some traction hopes Canada could avoid U.S. trade tariffs through negotiations and looked ahead to upcoming domestic GDP data.
• Canadian third-quarter GDP data, due on Friday, could provide insights into the pace of potential interest rate cuts from the Bank of Canada
• The GDP report, along with recent stronger-than-expected inflation data, could prompt the market to reassess the likelihood of another large interest rate cut next month.
• A daily close below 38.2%fib will further improve the technical outlook, and open the possibility of a drop towards 1.3900 level.
• Immediate resistance is located at 1.4101(23.6%fib), any close above will push the pair towards 1.4157(Higher BB).
• Support is seen at 1.3984 (38.2%fib) and break below could take the pair towards 1.3896(50%fib).
Recommendation: Good to sell around 1.4010 with stop loss of 1.4150 and target price of 1.3920
