FxWirePro: USD/CAD dips as dollar slides as U.S. CPI falls short of forecasts

• USD/CAD dipped on Wednesday as dollar fell  after data showed underlying inflation in the world's largest economy rose less than expected last month.

•  U.S. consumer prices rose less than expected in May, with lower gasoline prices offsetting rising rents. However, inflation is likely to pick up in the coming months due to the Trump administration's import tariffs.

• The Consumer Price Index (CPI) rose 0.1% in May, slowing from April’s 0.2% gain, according to the U.S. Bureau of Labor Statistics. The reading came in below the 0.2% increase expected by economists.

• A 0.3% increase in the cost of shelter, mostly rents, was the main driver of the rise in the CPI. Food prices rebounded 0.3% after dipping 0.1% in April.

.  •At GMT 17:42, the pair was trading down  0.12 percent  at 1.3654

• Immediate resistance is located at 1.3735(June 19th high), any close above will push the pair towards 1.3816(38.2%fib).

• Support is seen at 1.3628(23.6%fib) and breakbelow could take the pair towards 1.3576(Lower BB).

Recommendation: Good to sell around 1.3680, with stop loss of 1.3770 and target price of 1.3600