• USD/CAD edged higher on Tuesday as investors weighed the implications of a potential U.S. government shutdown that could disrupt critical economic data releases .
• U.S. Vice President JD Vance cautioned that the government seemed headed for a shutdown after budget talks between President Donald Trump and Democratic leaders stalled.
• A government shutdown could postpone Friday’s key U.S. employment report, potentially adding uncertainty to the Federal Reserve’s monetary policy decisions.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3953(Higher BB), any close above will push the pair towards 1.3983(38.2%fib).
• Support is seen at 1.3892 (50%fib) and break below could take the pair towards 1.3843(SMA 20).
Recommendation: Good to buy around 1.3920, with stop loss of 1.3850 and target price of 1.3990
