FxWirePro: USD/CAD loses momentum but outlook is bullish

• USD/CAD eased on Wednesday as a strong rebound in oil prices supported the Canadian dollar. 

• Oil prices rose for a second consecutive day on Wednesday, climbing about 2% on hopes of progress toward a U.S. trade deal with China and India. The price of oil , one of Canada's major exports   rose $1.19, or 1.9%, to $62.51 a barrel.

• Canada’s annual inflation rate rose to 2.4% last month, its highest since February and up from 1.9% in August, driven mainly by a smaller year-on-year drop in gasoline prices and higher food costs

•Investors see a roughly 80% chance the BoC cuts its benchmark interest rate at a policy decision on October 29, down from 86% before the data.

•  Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.

•  Immediate resistance is located at 1.4030(Daily high), any close above will push the pair towards 1.4078(23.6%fib).

• Support is seen at 1.3986 (38.2%fib) and break below could take the pair towards 1.3907 (50%fib).

Recommendation: Good to buy  around 1.3970, with stop loss of 1.3900 and target price of 1.4070