• USD/CAD saw a slight recovery on Thursday as the greenback gained following the release of U.S. PMI data.
• The U.S. services PMI increased to 55.2 in August, up from 55.0 in July, defying economists' expectations of a decline to 54.0.
• The nearly unchanged composite PMI suggested that U.S. economic activity continued to be solid as the third quarter advanced.
• The pair recovered to 1.3598 , after touching its lowest level level since April 10 at 1.3575.
• Technical signals are bearish as RSI is at 32, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.3634 (38.2%fib), any close above will push the pair towards 1.3674 (50%fib).
• Support is seen at 1.3575(23.6%fib) and break below could take the pair towards 1.3552(Lower BB).
Recommendation: Good to sell around 1.3630, with stop loss of 1.3700 and target price of 1.3530
