• USD/CAD strengthened on Wednesday as broad-based gains for the greenback offset higher oil prices .
•Dollar firmed after Federal Reserve Chair Jerome Powell struck a cautious tone on further easing overnight.
• The price of oil was up 1.9% as U.S. crude inventory data added to a sense in the market of tightening supplies. Oil is one of Canada's major exports.
• Canada’s factory sales slipped 1.5% in August versus July, driven by declines in transportation equipment and food products, early estimates indicated.
• U.S. data will be closely watched this week, with Friday’s PCE inflation report expected to guide Fed policy outlook.
• Immediate resistance is located at 1.3901(50%fib), any close above will push the pair towards 1.3925(Higher BB).
• Support is seen at 1.3806(SMA 20) and break below could take the pair towards 1.3754(38.2%fib).
Recommendation: Good to buy around 1.3890, with stop loss of 1.3800 and target price of 1.3950
