• USD/CAD eased on Wednesday as dollar slipped as investors digested the latest economic data and the potential impact of policies from the incoming U.S. administration
• Data showed that consumer spending grew solidly in October, suggesting the economy continued its strong growth momentum into the fourth quarter. However, progress in reducing inflation seems to have stalled in recent months..
• Traders are betting on a 70% probability for a Federal Reserve rate cut in December compared with a 59% probability on Tuesday, according to CME Group's FedWatch tool.
• A daily close below 38.2%fib will further improve the technical outlook, and open the possibility of a drop towards 1.3900 level.
• Immediate resistance is located at 1.4101(23.6%fib), any close above will push the pair towards 1.4157(Higher BB).
• Support is seen at 1.3984 (38.2%fib) and break below could take the pair towards 1.3890(50%fib).
Recommendation: Good to sell around 1.4050 with stop loss of 1.4150 and target price of 1.3920
