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FxWirePro: USD/CAD uptrend gains momentum after US inflation data, good to buy on dips

• USD/CAD rose on Wednesday   after data showed U.S. inflation continued to slow as expected  .

• The Bureau of Labor Statistics said the consumer price index rose by 2.6% in October, while the core rate, which strips out food and energy, rose 3.3% - in line with forecasts..

  • Traders were placing a near-69% chance of a quarter-point cut when the Fed meets on Dec. 18, compared with around 62% earlier on Wednesday, according to CME Group's FedWatch Tool.

•  Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 SMAs tracking north.

•  Immediate resistance is located at 1.4005(23.6%fib), any close above will push the pair towards 1.4023(Psychological level).

• Support is seen at 1.3923(Daily low) and break below could take the pair towards 1.3889(38.2%fib).

Recommendation: Good to buy  around 1.3970, with stop loss of 1.3850 and target price of 1.4060

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