FxWirePro: USD/CAD hits 2-week low, scope for further downside

• USD/CAD dipped to hit 2-week low on Monday as   domestic data showed inflation rising at a faster pace than expected, with investors looking ahead to a key deadline for new U.S. tariffs on goods from Canada..

• Canada’s inflation rose to 3.0% in July, above the 2.9% forecast, driven by higher gasoline prices, while core inflation remained subdued at around 2%.

• Separate data showed that foreign investors bought a net C$40.83 billion ($29.46 billion) in Canadian securities in June, led by federal government bonds.

• Money markets expect the central bank to hold rates at its next meeting, while pricing in a 50.6% chance of a December rate hike.
           
•  Immediate resistance is located at 1.3897(38.2%fib), any close above will push the pair towards 1.4000(Psychological level)

• Support is seen at 1.3854(Lower BB) and break below could take the pair towards 1.3761(23.6%fib).

Recommendation: Good to sell around 1.3950  with stop loss of 1.4000 and target price of 1.3830