• USD/CAD initially gained but gave up some ground after data showed Canada's annual inflation rate increased to 1.9% in January.
• Canada's annual inflation rate rose 1.9% in January, up from 1.8% in December as lower prices helped by a sales tax reprieve were partly offset by higher cost of gasoline and natural gas, data showed on Tuesday.
• The core measures of the consumer price index, which have not declined as fast as the inflation rate in the past few months, edged up too.
• At GMT 15:46 ,the dollar was up 0.04 % at 1.4188 against Canadian dollar.
• Immediate resistance is located at 1.3273(Dec 16th high), any close above will push the pair towards 1.3348(50%fib).
• Support is seen at 1.4162 (61.8%fib) and break below could take the pair towards 1.4111 (Lower BB).
Recommendation: Good to sell around 1.4230, with stop loss of 1.4280, and target price of 1.4150
