FxWirePro:' USD/CAD faces downside risk below 1.4000

• USD/CAD dipped on Monday as investors assessed Middle East developments while positioning ahead of a busy week of key U.S. economic data.

• Oil prices were little changed on Monday, with Brent crude futures trading around $84.49 a barrel and West Texas Intermediate near $79 a barrel.

• Investors are  awaiting key U.S. inflation data this week, with July CPI due on Wednesday and PPI scheduled for Thursday.

• Near-term rate-hike expectations eased after Friday’s data showed an unexpected decline in U.S. employment in July, with markets now pricing a 44% chance of a September rate hike..

• Meanwhile, Canada’s jobs report was stronger, with employment rising by 75,100 positions and the unemployment rate falling for a third consecutive month..

• Still, the Bank of Canada is widely expected to leave interest rates unchanged at its September meeting.
               
•  Immediate resistance is located at 1.4049(SMA 20), any close above will push the pair towards 1.4070(38.2%fib.).

• Support is seen at 1.3936(50%fib) and break below could take the pair towards 1.3898( Lower BB).

Recommendation: Good to sell around 1.3950  with stop loss of 1.4050 and target price of 1.3900