FxWirePro: USD/CAD slips as Fed independence fears weigh on US dollar

• USD/CAD slipped lower on Thursday as dollar weakened on intensifying concerns over the Federal Reserve's credibility, with investor confidence shaken by reports suggesting potential political interference.

• A Wall Street Journal article reported that President Trump is considering announcing a replacement for Fed Chair Jerome Powell as early as September, fueling fears of compromised central bank independence.

• Trump also confirmed he is weighing three or four candidates for the top Fed job, further stoking market uncertainty.

• U.S. economic data delivered mixed signals on Thursday. The final estimate from the Commerce Department showed GDP contracted by 0.5% in the first quarter.

• In contrast, weekly jobless claims data revealed a decline in new filings, indicating continued strength in the labor market.

•   Technicals are favoring bearish sentiment as RSI is at 37 and the pair is trading below  5, 9 & 11-DMA’s.

. • Immediate resistance is located at 1.3716(38.2%fib), any close above will push the pair towards 1.3779(Higher BB).

• Support is seen at 1.3584(Lower BB) and break below could take the pair towards 1.3533(23.6%fib).

Recommendation: Good to sell around 1.3640, with stop loss of 1.3730 and target price of 1.3550