FxWirePro: USD/CAD uptrend loses steam, remains on bullish path

• USD/CAD dipped on Friday  as upbeat Canadian retail sales  data and higher oil prices offset stronger US dollar.

• Canada retail sales rose 1.1% m/m to C$69.65B in January, driven by stronger motor vehicle and parts sales, according to Statistics Canada.

  • Oil prices jumped nearly $2 in volatile trading as the Iran conflict showed no signs of easing, with the U.S. set to deploy additional troops to the Middle East

• The BoC has held rates at 2.25% since October, with Governor Tiff Macklem saying there is time to assess the Iran war’s impact, but warning persistently high energy prices could trigger rate hikes.

•  Money markets lifted bets on a Bank of Canada rate hike, pricing in over a 20% chance next month as the Iran conflict persists and rising oil prices fuel inflation concerns

•  Immediate resistance is located at 1.3759(50%fib), any close above will push the pair towards 1.3798(50%fib ).

• Support is seen at 1.3701(Daily low) and break below could take the pair towards 1.3635 (38.2%fib).

Recommendation: Good to buy   around 1.3720, with stop loss of 1.3650  and target price of 1.3850