• USD/CAD rebounded strongly on Thursday as weaker Canadian manufacturing data and stronger dollar weighed on Canadian dollar .
• Canadian manufacturing activity shrank in April at its fastest pace since the early days of the COVID-19 pandemic, as uncertainty over U.S. trade policy hit production and dampened new orders.
• Canada's Manufacturing PMI dropped to 45.3 in April from 46.3 in March, hitting its lowest level since May 2020, signaling a deeper contraction in the sector as readings below 50 indicate declining activity.
• The dollar continued to rebound, supported by rising optimism over potential trade agreements between the United States and key partners, which boosted investor confidence and demand for the greenback.
• Immediate resistance is located at 1.3867 (50%fib), any close above will push the pair towards 1.3952(61.8%fib).
• Support is seen at 1.3778(38.2%fib) and break below could take the pair towards 1.3669(23.6%fib).
Recommendation: Good to buy around 1.3830, with stop loss of 1.3760 and target price of 1.3900
