FxWirePro: USD/CAD rebounds as bulls take charge

• USD/CAD rebounded  strongly on Friday as emerging trade frictions between the U.S. and Canada weighed on Canadian dollar 

• Trump ended negotiations on Thursday following the release of a video featuring former President Ronald Reagan warning that tariffs lead to trade wars and economic hardship.

• Carney lifted most of Canada’s retaliatory tariffs on U.S. imports imposed by his predecessor, but White House adviser Kevin Hassett said President Trump was frustrated with Canada, noting that trade negotiations were not progressing well.

• Prime Minister Mark Carney said on Friday that Canada is ready to restart trade talks with the United States after President Donald Trump suspended them over an anti-tariff ad released by Ontario’s provincial government.

•On the data front, U.S. consumer prices rose slightly less than expected in September, as higher gasoline costs were offset by easing rents, keeping the Federal Reserve on course for another rate cut next week.

•The Consumer Price Index (CPI) rose 0.3% in September after a 0.4% increase in August, driven mainly by a 4.1%, according to the Labor Department.

•  Immediate resistance is located at 1.4067(23.6%fib), any close above will push the pair towards 1.4103(Higher BB).

• Support is seen at 1.3991(SMA20) and break below could take the pair towards 1.3971(38.2%fib).

Recommendation: Good to buy  around 1.3990, with stop loss of 1.3920 and target price of 1.4100