FxWirePro: USD/CAD retreats, but trend is still bullish

• USD/CAD eased on Wednesday as the U.S. dollar weakened, with traders increasing bets on more Fed rate cuts this year after July's jobs data came in softer than expected.

• With no significant U.S. economic data released on Wednesday, traders remained focused on the implications of Friday’s jobs report..

•  U.S. job growth slowed in July, and prior payrolls were revised down by 258,000, signaling a notable weakening in labor market conditions.

•Minneapolis Fed President Neel Kashkari said Wednesday the Fed may need to cut rates soon amid signs of a slowing U.S. economy, despite uncertainty over whether tariffs will keep driving inflation higher.

• Fed funds futures now show an 89% chance of a 25bps rate cut in September, up sharply from 48% a week ago, according to CME FedWatch. Markets are pricing in a total of 58bps in cuts for the year.

• Immediate resistance is located at 1.3815(Aug 5th high), any close above will push the pair towards 1.3858(50%fib).

• Support is seen at 1.3734(38.2%fib) and break below could take the pair towards 1.3566(23.6%fib).

Recommendation: Good to buy around 1.3730, with stop loss of 1.3650 and target price of 1.3860