FxWirePro: USD/CAD loses upside momentum but outlook is bullish

USD/CAD eased on Friday as investors assessed developments in the Middle East, while oil prices eased on reports of additional Saudi supply..

• The Strait of Hormuz is still largely cut off, with just four commodities ​vessels passing through the strait on Thursday, below the 10-day average of about 16, preliminary shipping data showed on Friday.

• US crude oil futures were trading 0.5% higher at $102.43 a barrel as markets assessed Saudi supply alongside concerns about a widening Middle East conflict. Oil is one of Canada's major exports.

• Bank of Canada Governor Tiff Macklem will speak on Monday, with markets awaiting his comments on the economy.

•Investors see a roughly 60% chance the BoC would hike at its next policy announcement on October 28.
           
•  Immediate resistance is located at 1.4019(50%fib), any close above will push the pair towards 1.4053(Higher BB.).

• Support is seen at 1.3905(61.8%fib) and break below could take the pair towards 1.3874(SMA 20).

Recommendation: Good to buy  around 1.3950  with stop loss of 1.3870 and target price of 1.4000