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FxWirePro: USD/CAD runs out of steam but maintains bullish outlook

 

• USD/CAD initially gained but gave up some ground on Monday as investors assessed the fiscal impact of the unexpected resignation of Canada's finance minister.

•   Following a policy dispute with Prime Minister Justin Trudeau, Canada's Finance Minister Chrystia Freeland resigned, calling his proposals for higher expenditure  political gimmicks.

• The price of oil   a key export for Canada, dropped 0.6% to $70.88 a barrel as investors reacted to weak consumer spending data in China, the world’s largest oil importer..

• At GMT 20:46, The pair was up 0.12% at 1.4246, edging back from its daily high of 1.4271.

•  Immediate resistance is located at 1.4273 (23.6%fib), any close above will push the pair towards 1.4302(Higher BB).

• Support is seen at 1.4218(Daily low) and break below could take the pair towards 1.4193(38.2%fib).

Recommendation: Good to buy  around 1.4240, with stop loss of 1.4150 and target price of 1.4320

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