• USD/CAD edged higher on Tuesday as investors assessed economic data for clues on global growth and monetary policy.
• Investors are largely expecting the Fed and the European Central Bank (ECB) to cut interest rates this month.
•Markets are now pricing in a 70% likelihood of a 25 basis point rate cut at the Fed's next meeting on Dec. 18, compared to about 50% just over a week ago.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a gain towards 1.4100 level.
• Immediate resistance is located at 1.4087(38.2%fib), any close above will push the pair towards 1.4131(23.6%fib).
• Support is seen at 1.4019 (50%fib) and break below could take the pair towards 1.3966(61.8%fib).
Recommendation: Good to buy around 1.4030 with stop loss of 1.3900 and target price of 1.4130
