• USD/CAD remains under pressure, with sellers firmly in control as the pair moves closer to a potential retest of the 1.3700 handle.
• On Wednesday, the Bank of Canada held rates at 2.25% while the Fed lowered its benchmark funds rate by 25 basis points. .
• The stronger jobs report had fuelled bets on a BoC rate hike in 2026, but those expectations cooled after the central bank’s latest policy announcement.
•On the data front, Canada posted a small monthly international trade surplus in September, reversing a trend of seven consecutive months of deficits, data showed on Thursday.
•It registered a marginal trade surplus of C$153 million ($110.92 million) in September, following a C$6.43 billion deficit in the prior month, Statistics Canada said.
• Immediate resistance is located at 1.3917(38.2%fib), any close above will push the pair towards 1.4000 (Psychological level).
• Support is seen at 1.3826(38.2%fb) and break below could take the pair towards 1.3775(Lower BB).
Recommendation: Good to sell around 1.3780, with stop loss of 1.3850 and target price of 1.3700
