• USD/CAD dipped on Friday as dollar rally faded as recent economic data and a drop in oil prices slightly cooled expectations for Federal Reserve rate hikes
• The dollar surged to a 13-month high on Wednesday as traders priced in expectations that a resilient U.S. economy would keep short-term interest rates elevated..
• The U.S. dollar has since weakened, heading for a second straight daily loss as Thursday’s data reduced expectations of further Fed rate hikes in the year ahead.
•The price of oil settled 3.7% lower at $69.23 a barrel, adding to its steep weekly decline, as as oil tankers kept exiting the Strait of Hormuz, easing supply concerns.
•Domestic data was downbeat, with a preliminary report showing that wholesale trade fell 0.7% in May from April.
• Immediate resistance is located at 1.4263(23.6%fib), any close above will push the pair towards 1.4286(Higher BB).
• Support is seen at 1.4113(38.2%fib) and break below could take the pair towards 1.4041(SMA 20).
Recommendation: Good to buy around 1.4170 with stop loss of 1.4100 and target price of 1.4250
