• USD/CAD dipped to hit two month low on Tuesday as rising oil prices lent support to the loonie, but gains were limited ahead of the upcoming U.S. inflation report.
• U.S. inflation data due Wednesday could provide fresh clues on the Federal Reserve’s policy path, with economists expecting consumer prices to reaccelerate in July after declining in June..
• Data on Friday showed Canada's economy added 75,100 jobs in July and the unemployment rate dropped to a two-year low.
• Oil prices, a major Canadian export, rose 1.3% to $83.16 a barrel as markets assessed signs of progress in talks between Oman and Iran over shipping through the Strait of Hormuz.
.• Immediate resistance is located at 1.3978(50%fib), any close above will push the pair towards 1.4042(SMA20).
• Support is seen at 1.3899(Lower BB) and break below could take the pair towards 1.38636 (61.8%fib).
Recommendation: Good to sell around 1.3940, with stop loss of 1.4000, and target price of 1.3870
