• USD/CAD edged lower on Tuesday as oil prices rose and Canada's trade data added to evidence that the domestic economy rebounded in the second quarter.
•Canada's trade surplus widened to a four-year high of C$4.24 billion ($2.98 billion) in May as exports rose for the fourth consecutive month.
• Canada's economy contracted at an annualized rate of 0.1% in the first quarter after a 1% contraction in the final three months of 2025.
•The price of oil, one of Canada's major exports, rose after reports of attacks on vessels near the Strait of Hormuz revived fears of disruptions to shipping through the critical energy transit route..
• Immediate resistance is located at 1.4252(23.6%fib), any close above will push the pair towards 1.4315(Higher BB).
• Support is seen at 1.4148(SMA20) and break below could take the pair towards 1.4112( 50%fib).
Recommendation: Good to sell around 1.4200, with stop loss of 1.4100 and target price of 1.4280
