FxWirePro: USD/CAD gains as broad dollar strength lifts pair

• USD/CAD rose on Wednesday as broad-based dollar strength and persistent trade uncertainty weighed on the Canadian economic outlook..

• Bank of Canada Governor Tiff Macklem said Monday that new U.S. tariffs could push Canada’s fourth-quarter growth below 1%, as uncertainty threatens to curb investment and hiring.

• Prime Minister Mark Carney last week announced measures to support the economy, including immediate tax write-offs for most new capital investments by businesses.

• The U.S. dollar rose to a nearly two-month high against a basket of major currencies as investors priced in further Federal Reserve rate hikes, while oil prices jumped after comments from Iran cast doubt on progress in peace talks.

• US crude oil futures were trading 2.2% higher at $92.49 a barrel. ​Oil is one of Canada's major exports.

           
•  Immediate resistance is located at 1.4118 (Higher BB), any close above will push the pair towards 1.4132 (38.2%fib)

• Support is seen at 1.4055 (50%fib) and break below could take the pair towards 1.4000(Psychological level).

Recommendation: Good to buy  around 1.4080 with stop loss of 1.4000 and target price of 1.4150