FxWirePro: USD/CAD recovers slightly but trend is still bearish

• USD/CAD recovered some ground on Wednesday as the greenback strengthened  as investors digested delayed U.S. labour market data and reassessed expectations for near-term Federal Reserve rate cuts.

• Data released on Tuesday suggested the U.S. labour market continues to weaken heading into year-end, though the figures come with significant caveats due to the government shutdown, labour supply quirks, data collection issues and other technical distortions.

• Meanwhile investors awaited   latest inflation reading, due on Thursday. Traders have been struggling to assess delayed data as it shows a less clear picture of the U.S. economy after a 43-day federal government shutdown.

• Canada’s October retail sales data is due later this week. The Bank of Canada left interest rates unchanged last week, with Governor Tiff Macklem noting that the economy remains broadly resilient to U.S. trade measures.

•  Immediate resistance is located at 1.3842(38.2%fb), any close above will push the pair towards 1.3934(50%fb).

• Support is seen at 1.3722(23.6%fb) and break below could take the pair towards 1.3670(Lower BB).

Recommendation: Good to sell  around 1.3820, with stop loss of 1.3900  and target price of 1.3770