• USD/CAD initially gained but recovered some ground as US inflation data for September .
• US inflation accelerated beyond forecasts last month, reinforcing market bets that the Federal Reserve may raise interest rates again as soon as this month.
• Hotter-than-expected US CPI has revived expectations of near-term Fed tightening, with PPI, retail sales and further Fed commentary now in focus.
• Traders see a 46% chance that the Federal Reserve will raise interest rates by a quarter percentage point on October 28..
• Meanwhile, Canada is pursuing a trade pact with India and closer EU ties to reduce reliance on the US, ahead of Indian PM Narendra Modi's visit in December.
• Immediate resistance is located at 1.4321(23.6%fib), any close above will push the pair towards 1.4402(Higher BB.).
• Support is seen at 1.4187 (38.2%fib) and break below could take the pair towards 1.4165 (SMA20).
Recommendation: Good to buy around 1.4220 with stop loss of 1.4150 and target price of 1.4280
