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• USD/ CAD initially dipped but recovered some ground as investors digested Canada inflation data.
• Canada's annual inflation rate fell to 2.5% in July from 2.7% in June, according to Statistics Canada. This matched the 2.5% annual rate anticipated by analysts.
• The pair has seen 1.3606 -1.3640 range on Tuesday , chart points to drop towards 1.3550 level.
• Immediate resistance is located at 1.3651 (38.2%fib), any close above will push the pair towards 1.3689 (50%fib).
• Support is seen at 1.3604 (23.6%fib) and break below could take the pair towards 1.3588 (Lower BB).
Recommendation: Good to sell around 1.3650, with stop loss of 1.3800 and target price of 1.3570
