• USD/CAD strengthened on Friday as stronger dollar offset upbeat Canadian retail sales data.
•The dollar firmed as investors weighed prospects for a Middle East peace deal and the possibility of further Federal Reserve rate hikes amid rising inflation.
• Canada's retail sales rose 0.9% in March, boosted by higher gasoline prices, while sales volumes fell 0.7%. Preliminary data showed sales likely increased another 0.6% in April.
• On Tuesday, data showed consumer prices increased less than expected in April, cooling expectations for Bank of Canada interest rate hikes this year.
• The price of oil CLc1, one of Canada's major exports, was trading 0.8% lower at $95.54 a barrel..
• Immediate resistance is located at 1.3841(38.2%fib), any close above will push the pair towards 1.3870(Higher BB).
• Support is seen at 1.3763 (50%fib) and break below could take the pair towards 1.3739(May 21s low).
Recommendation: Good to buy around 1.3800, with stop loss of 1.3740 and target price of 1.3880
