• USD/CAD dipped on Wednesday but downside was limited as caution about expected U.S. trade tariffs on Canada offset cooler-than-expected U.S. core inflation data.
• U.S. core consumer price index, excluding food and energy, slowed to 3.2% in December from 3.3% in November.
•Meanwhile, Canadian factory sales grew by 0.8% in November on higher sales of aerospace products and parts, as well as petroleum and coal products.
• Canadian wholesale trade fell by 0.2% in November on lower sales in the motor vehicle and motor vehicle parts and accessories subsector.
• At GMT 19:13, the pair was down 0.12% at 1.4331.
• Immediate resistance is located at 1.4373(38.2%fib), any close above will push the pair towards 1.4464(23.6%fib).
• Support is seen at 1.4288(50%fib) and break below could take the pair towards 1.4222(61.80%fib).
Recommendation: Good to buy around 1.4320, with stop loss of 1.4200 and target price of 1.4500
