FxWirePro: USD/CAD gains some ground but outlook still bearish

• USD/CAD strengthened on Thursday   as Canadian dollar weakened as  equity and commodity markets fell.

• U.S. stock indexes fell on a renewed selloff in software and technology shares, while strong labor market data tempered expectations for a Federal Reserve interest rate cut.

• Oil prices, a key driver of Canada’s export revenues, fell 3% to $62.69 per barrel after the International Energy Agency revised down its global oil demand forecast for 2026

• Meanwhile, stronger-than-expected U.S. jobs data released on Wednesday reduced expectations of near-term Federal Reserve rate cuts, putting pressure on gold and silver prices.

• Investors will also closely watch the U.S. inflation data due on Friday, as it may offer further insight into the Federal Reserve’s interest rate outlook.

•  Immediate resistance is located at 1.3655(38.2%fib), any close above will push the pair towards 1.3680(SMA 20).

• Support is seen at 1.3482(523.6%fib) and break below could take the pair towards 1.3450(Lower BB).

Recommendation: Good to sell around 1.3640 with stop loss of 1.3700  and target price of 1.3570