FxWirePro: USD/CAD downtrend slows, but bearish sentiment remains

• USD/CAD initially dipped but recovered ground    investors monitored developments at the World Economic Forum in Davos and awaited talks to renew a continental trade pact.

• The United States-Mexico-Canada Agreement, which has shielded much of Canada's exports from U.S. tariffs, is set for review by a July 1 deadline.

• Oil prices, a key Canadian export, climbed 0.6% to $60.73 a barrel as investors weighed a temporary shutdown at two major fields in Kazakhstan.

• On the data front, Producer prices in Canada fell 0.6% in December from November as energy prices declined. The annual growth rate slowed to 4.9% from 5.9%.

•Investors expect the Bank of Canada to leave its benchmark interest rate on hold next week at a three-year low of 2.25%.

•  Immediate resistance is located at 1.3860(50%fib), any close above will push the pair towards 1.3929(Jan 20th high).

• Support is seen at 1.3809(SMA 20) and break below could take the pair towards 1.3749(38.2%fib).

Recommendation: Good to sell  around 1.3830, with stop loss of 1.3900 and target price of 1.3760