• USD/CAD moved slightly lower on Tuesday as investors assessed U.S. economic data amid rising expectations of a Federal Reserve rate cut.
•Data showed U.S. retail sales rose 0.2% in September, less than 0.4% forecast by economists polled by Reuters and slowing from an unrevised 0.6% gain in August.
•Producer prices increased 0.3%, in line with expectation, after an unrevised 0.1% drop in August; however, at the core level prices inched up 0.1%, below the consensus forecast of 0.2%.
• Traders are now pricing in an 83% chance of a cut next month, up from 50% a week earlier, CME FedWatch showed.
• Immediate resistance is located at 1.4133(23.6%fib), any close above will push the pair towards 1.4170(Higher BB).
• Support is seen at 1.4051 (38.2%fib) and break below could take the pair towards 1.3982(50%fib).
Recommendation: Good to buy around 1.4080, with stop loss of 1.4010 and target price of 1.4170
