• USD/CAD rose on Tuesday as lower oil prices and stronger greenback weighed on commodity lined Canadian dollar .
• The U.S. dollar strengthened against a basket of major currencies as investors anticipated Wednesday's U.S. inflation data, which could influence expectations for the Fed’s rate cut trajectory.
• U.S. crude oil futures declined by 3.6% to $66.23 per barrel, with the market weighed down by a weaker demand outlook and ongoing concerns about global oversupply.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3609(38.2%fib), any close above will push the pair towards 1.3653(50%fib).
• Support is seen at 1.3552 (23.6%fib) and break below could take the pair towards 1.3500(Psychological level).
Recommendation: Good to buy around 1.3610, with stop loss of 1.3550 and target price of 1.3680
