FxWirePro: USD/CAD firms slightly, but downward resumption looks likely

• USD/CAD gained some traction  on Thursday  as dollar firmed after hot US U.S. producer prices data.

• U.S. producer prices increased in line with expectations in August amid a rebound in the cost of energy products.

• Investors will closely monitor Friday’s U.S. CPI data for further signals on the Federal Reserve’s interest rate outlook.

• Bank of Canada Governor Tiff Macklem said last week that policymakers were prepared to raise borrowing costs multiple times if inflation remained elevated.

• Oil prices jumped 4%, with benchmark Brent crude hitting $105 a barrel after the biggest surge in shipping attacks since the Iran war began fueled concerns over supply disruptions.
    
•  Immediate resistance is located at 1.3854(SMA 20), any close above will push the pair towards 1.3851(38.2%fib.).
• Support is seen at 1.3763 (Lower BB) and break below could take the pair towards 1.3734(23.6%fib).

Recommendation: Good to sell around 1.3850 with stop loss of 1.3950 and target price of 1.3800