• USD/CAD strengthened on Monday as investors absorbed Canadian GDP data, coupled with a strengthening U.S. dollar.
• Canada's economy grew by 0.3% month-on-month in October, surpassing both Statistics Canada's preliminary estimate and market consensus forecasts.
• The Bank of Canada has reduced interest rates by a total of 175 basis points since June as inflation returned to its target. Money markets now price in a roughly 50% probability of a 25 basis point cut in January.
• Buying pressure will remain in the short-term, only a move below 1.4280(38.2%fib) strong support will undermine upside.
• Immediate resistance is located at 1.4444(23.6% fib), any close above will push the pair towards 1.4531 (Higher BB)
• Support is seen at 1.4330 (Dec20th low) and break below could take the pair towards 1.4280(38.2%fib).
Recommendation: Good to buy around 1.4380, with stop loss of 1.4300and target price of 1.4500
