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FxWirePro: USD/CAD pauses decline,critical support lies ahead

• USD/CAD initially dipped but recovered some ground as investors digested Canada's inflation data  .

• Canada’s annual inflation held at 2.2% in November, unchanged from October, driven mainly by food prices rising at their fastest pace in over two years, Statistics Canada said Monday.

• November’s monthly inflation rose 0.1%, matching analysts’ estimates and easing from 0.2% in October, Statistics Canada said.

• Canada’s annual inflation has remained subdued since April following the removal of the carbon levy on gasoline, keeping fuel prices low on a year-on-year basis.

• CPI-median, the centermost measure of the CPI basket, eased to 2.8% in November from 3% in the previous month.

•  Immediate resistance is located at 1.3795(Dec 12th high), any close above will push the pair towards 1.3840 (38.2%fb).

• Support is seen at 1.3734(23.6%fb) and break below could take the pair towards 1.3714(Lower BB).

Recommendation: Good to sell  around 1.3780, with stop loss of 1.3850  and target price of 1.3700

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