FxWirePro: USD/CAD loses momentum but outlook is bullish

• USD/CAD dipped slightly on Tuesday as investors digested mixed inflation data and awaited updates on trade developments.

• Canada’s annual inflation rate dropped to 1.7% in April, driven by lower energy prices, but rising core inflation measures could complicate the Bank of Canada’s decision on future rate changes..

• The overall inflation rate declined to 1.7% in April from 2.3% in March, following the removal of a federal consumer carbon tax, Statistics Canada reported on Tuesday.

• Later Tuesday, finance ministers from the Group of Seven (G7) will meet in Canada to seek unity on non-tariff matters, though reaching agreement may be challenging amid the Trump administration’s focus on advancing U.S. interests.

• Immediate resistance is located at 1.3993(38.2%fib), any close above will push the pair towards 1.4056(Higher BB).

• Support is seen at 1.3913(50%fib)and break below could take the pair towards 1.3821(61.8%fib).

Recommendation: Good to buy around 1.3930, with stop loss of 1.3860 and target price of 1.4000