FxWirePro: USD/CAD gains some ground but bearish outlook persists

• USD/CAD strengthened on Wednesday   as stronger dollar and weaker Canada’s services sector data weighed Canadian dollar .

• The greenback   firmed after the Institute for Supply Management said on Wednesday that the U.S. services sector held steady in January.

• Canada’s services sector contracted for a third consecutive month in January, as trade uncertainty weighed on activity and new business, according to S&P Global’s Canada Services PMI.

• Canada’s employment report for January, scheduled for release on Friday, may offer additional insight into the health of the domestic economy, with analysts forecasting a modest gain of 5,000 jobs.

• The U.S. dollar strengthened against a basket of major currencies, extending gains following President Donald Trump’s selection of former Federal Reserve Governor Kevin Warsh as the next Fed chair..

•  Immediate resistance is located at 1.37685(38.2%fib), any close above will push the pair towards 1.3749(SMA 20).

• Support is seen at 1.3607(Feb 2nd low) and break below could take the pair towards 1.3506(23.6%fib B).

Recommendation: Good to sell  around 1.3680, with stop loss of 1.3780 and target price of 1.3560