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

• USD/CAD dipped on Tuesday as dollar eased after data showed U.S. consumer prices increased moderately in July, leaving intact the case for a Federal Reserve interest-rate cut next month .

• The Consumer Price Index increased by 0.2% in July, following a 0.3% rise in June, according to the Labor Department’s Bureau of Labor Statistics on Tuesday.

•  Over the 12 months ending in July, the Consumer Price Index rose 2.7%, unchanged from June. Economists surveyed by Reuters had expected a 0.2% monthly increase and a 2.8% rise year-on-year.

• The report did not derail expectations of a Federal Reserve rate cut in September, which have supported emerging markets following a weak jobs report that prompted rapid market adjustments.

 •  At GMT 05:07, the US  dollar was down  0.16% to 0.6501 against the Canadian dollar.

• Immediate resistance is located at 1.3811(Daily high), any close above will push the pair towards 1.3858(50%fib).

• Support is seen at 1.3736(SMA 20) and break below could take the pair towards 1.3721(38.2%fib).

Recommendation: Good to buy around 1.3750, with stop loss of 1.3650 and target price of 1.3860