• USD/CAD advanced on Wednesday as investors digested U.S. and Canadian manufacturing PMI data .
• The S&P Global US Manufacturing PMI declined to 52.0 in September from 53.0 in August, signaling a moderate yet continued expansion in the sector..
• The S&P Global Canada Manufacturing PMI declined to 47.7 in September from 48.3 in August, marking the eighth consecutive month below the 50 mark, which signals ongoing contraction in the sector.
• Separate data showed, U.S. private payrolls fell by 32,000 jobs in September, marking the largest decline in two and a half years. This follows a revised 3,000-job drop in August.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3955(Daily high), any close above will push the pair towards 1.4000(Psychological level).
• Support is seen at 1.3913(38.2%fib) and break below could take the pair towards 1.3842(50%fib).
Recommendation: Good to buy around 1.3940, with stop loss of 1.3870 and target price of 1.4000
