• USD/CAD steadied around 1.4050 on Thursday as investors assessed U.S.-China tensions and Bank of Canada Governor Tiff Macklem speech.
• Investors remained focused this week on the ongoing U.S.-China trade tensions, as Washington on Wednesday condemned China’s expanded rare earth export controls, calling them a threat to global supply chains.
• Bank of Canada Governor Tiff Macklem is set to speak on Canada's economic outlook at 13:30 ET. Market participants price in 63% chances of a 25-basis-point rate cut at the October 29 policy meeting.
• On the data front, Canadian home sales declined 1.7% in September from August, ending a streak of gains that began in April, according to data from the Canadian Real Estate Association on Thursday.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.4080(23.6%fib), any close above will push the pair towards 1.4115(Higher BB).
• Support is seen at 1.3976 (38.2%fib) and break below could take the pair towards 1.3946 (SMA 20).
Recommendation: Good to buy around 1.4010, with stop loss of 1.3950 and target price of 1.4100
