FxWirePro: USD/CAD loses momentum but outlook remains bullish

• USD/CAD eased slightly on Friday as greenback weakened as the U.S.  government shutdown increased uncertainty.

• The U.S. Senate is set to vote again on competing Democratic and Republican proposals to end the government shutdown, now in its third day, though neither plan currently appears likely to secure passage.

•  The release of the key U.S. non-farm payrolls report, originally scheduled for Friday, has been delayed, forcing investors to rely on alternative indicators that suggest a cooling labor market and reinforce expectations of an upcoming rate cut.

• Canada’s services sector shrank more sharply in September, with firms cutting jobs and backlogs dropping to their lowest level in five years, Friday’s data showed.

•  Immediate resistance is located at 1.3974(23.6%fib), any close above will push the pair towards 1.3996 (Higher BB).

• Support is seen at 1.3896(23.6%fib) and break below could take the pair towards 1.3860( (SMA20).

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