• 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
