FxWirePro: USD/CAD firms slightly, but downward resumption looks likely

• USD/CAD edged higher on Wednesday  after U.S. inflation data further reduced the odds of an interest rate hike from the Federal Reserve next month.

• U.S. consumer prices barely increased in July as the cost of gasoline declined for a second straight month, while underlying inflation was benign.

•U.S. consumer prices increased 0.1% in July, in line with expectations, data showed on Wednesday

•Money markets have shown a roughly 50% chance of a hike 0#USDIRPR heading into the data release.

• Domestic data showed that the value of building permits rebounded 18.5% in June after declining in April and May, led by the non-residential sector..

• The price of oil  , one of Canada's major exports, edged 0.1% lower to $83.11 a barrel after forecasters cut projections for 2026 global oil demand.
               
•  Immediate resistance is located at 1.4029(SMA 20), any close above will push the pair towards 1.4063(38.2%fib.).

• Support is seen at 1.3916(50%fib) and break below could take the pair towards 1.3875( Lower BB).

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