• USD/CAD edged higher on Wednesday as upbeat US economic data and optimism that trade deals will brighten the U.S. economic outlook lifted greenback.
• US consumer confidence rose to 98 in May, a Conference Board report showed. Economists polled had expected the index to stand at 87.
• Stronger consumer confidence on Tuesday reinforced expectations that the U.S. economy remains robust, leading the Fed to focus on inflation in upcoming policy decisions until signs of weakening appear.
• The Federal Reserve will release minutes from its May 6-7 meeting later on Wednesday, but no major surprises are expected.
•At GMT 16:44, the greenback was trading up 0.09 percent at 1.3821 against Canadian dollar
• Immediate resistance is located at 1.3860(38.2%fib), any close above will push the pair towards 1.3944(May 8th high).
• Support is seen at 1.3686(23.6%fib) and break below could take the pair towards 1.3638 (Lower BB).
Recommendation: Good to sell around 1.3830 with stop loss of 1.3900 and target price of 1.3720
