FxWirePro: USD/CAD rebounds on from 5 -month low, downtrend likely to resume

• USD/CAD rebounded on from 5 -month low Tuesday  as investors digested Canadian inflation and housing starts data.

• Data showed that Canada's annual inflation rate unexpectedly decreased to 2.3% in March, down from 2.6% in February, mainly driven by lower gasoline and travel tour prices.

• In a separate report, data from the national housing agency showed that Canadian housing starts fell by 3.3% in March compared to the previous month.

•The data comes ahead of the Bank of Canada's monetary policy decision on Wednesday, with markets currently estimating a 57% chance that the bank will pause after seven consecutive rate cuts.

• On the tariff front, U.S. President Donald Trump hinted on Monday at possible exemptions for the 25% tariffs on auto and auto parts imports from Mexico, Canada, and other regions.

•  Immediate resistance is located at 1.4007 (50%fib), any close above will push the pair towards 1.4117(April 10th high).

• Support is seen at 1.3837(23.6%fib) and break below could take the pair towards 1.3797(Lower BB).

Recommendation: Good to sell around 1.3980, with stop loss of 1.4100 and target price of 1.3900