FxWirePro: USD/CAD dips as weaker dollar gives bears some traction

• USD/CAD slipped lower on Wednesday as dollar weakened after benign U.S. economic data reinforced expectations of a December rate cut.

• U.S. data on Tuesday showed retail sales grew less than expected in September, while producer prices matched forecasts.

• U.S. consumer confidence weakened in November as households grew more concerned about jobs and personal finances.

•All of that left traders adding to bets of a Fed cut next month, with markets now pricing in an 85% chance of a 25-basis-point move, according to the CME FedWatch tool.

• Friday’s release of Canadian GDP data may influence market expectations for additional interest rate cuts by the Bank of Canada, providing fresh insight into the country’s economic momentum.

•  Immediate resistance is located at 1.4136(23.6%fib), any close above will push the pair towards 1.4172(Higher BB).

• Support is seen at 1.4041 (SMA20) and break below could take the pair towards 1.4032(38.2%fib).

Recommendation: Good to sell  around 1.4060, with stop loss of 1.4120 and target price of 1.3970