FxWirePro: USD/CAD slips below 1.3600 level, vulnerable to more downside

• USD/CAD fell below the 1.3600 level on Thursday as the U.S. dollar weakened broadly, while the likelihood of renewed U.S.-Iran attacks kept optimism in check.

• The U.S. dollar fell against a basket of major currencies as Japanese authorities were reported to have intervened in foreign exchange markets to support the yen.

•   The Bank of Canada warned that it may need to raise interest rates in consecutive moves if high oil prices persist and start driving inflation higher.

• Canada’s economy grew 0.2% in February, in line with expectations, while an advance estimate showed flat growth in March. This points to Q1 annualized growth of around 1.7%, slightly above the Bank of Canada’s 1.5% forecast.

•  Immediate resistance is located at 1.3633( 38.2%fib), any close above will push the pair towards 1.3724(SMA 20).

• Support is seen at 1.3535( Lower BB)and break below could take the pair towards 1.3481(23.6%fib).

Recommendation: Good to sell  around 1.3600 with stop loss of 1.3670 and target price of 1.3530