FxWirePro: USD/CAD inches higher, set to stay on back foot

• USD/CAD edged higher but gains were limited on Friday  as investors digested cooler-than-expected U.S. inflation data for January.

•   U.S. Labor Department data on Friday showed that the consumer price index rose 0.2% last month compared with an estimate of 0.3% from economists polled by Reuters.

• Earlier this week, data indicated the U.S. labour market was stabilizing, with the unemployment rate declining, strong job growth in January, and fewer-than-expected new unemployment claims.

• Stronger-than-expected U.S. jobs data released on Wednesday dampened expectations of near-term rate cuts by the Federal Reserve, weighing on gold and silver prices.

• Oil prices fell further, after a 3% slide on Thursday. U.S. West Texas Intermediate crude  was down 0.7% to $62.41 a barrel, while Brent crude futures   fell 0.4% to $67.19.

•  Immediate resistance is located at 1.3655(38.2%fib), any close above will push the pair towards 1.3680(SMA 20).

• Support is seen at 1.3482(523.6%fib) and break below could take the pair towards 1.3450(Lower BB).

Recommendation: Good to sell around 1.3640 with stop loss of 1.3700  and target price of 1.3570