• USD/CAD retreated slightly from three month high on Wednesday as stronger-than-expected U.S. jobs data and a UK budget release set off choppy trading.
• U.S. private payrolls growth surged in October, overcoming fears of temporary disruptions from hurricanes and strikes, according to the ADP National Employment Report.
•Meanwhile, separate data showed the U.S. economy grew at an annualised rate of 2.8% in the third quarter, slightly lower than the 3% expected by economists.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3948(23.6%fib), any close above will push the pair towards 1.4000(Psychological level).
• Support is seen at 1.3893(5SMA) and break below could take the pair towards 1.3860(38.2%fib).
Recommendation: Good to buy around 1.3900, with stop loss of 1.3820 and target price of 1.3970
