FxWirePro: USD/CAD extends gains, eyes 1.3850 level

• USD/CAD edged gains on Tuesday as dollar advanced as traders looked toward Friday's U.S. jobs report.

• Attention will also be on Friday’s U.S. nonfarm payrolls report, which is expected to give investors and the Fed a clearer view of the labor market at the heart of the policy debate.

•  Money markets have recently priced an around 90% chance of a 25 basis-point Fed rate cut in September and around 100 bps of easing by autumn 2026, according to the CME FedWatch tool.

• Investors are also gearing up for Canada’s upcoming unemployment report, scheduled for release later this week. The data is expected to provide crucial insights into the strength of the Canadian labor market

•On the data front, Canada’s S&P Global Manufacturing PMI rose to 48.3 in August from 46.1 in July, signaling a modest improvement in the health of the manufacturing sector.

• Immediate resistance is located at 1.3802(SMA 20), any close above will push the pair towards 1.3871(50%fib).

• Support is seen at 1.3726(38.2%fib) and break below could take the pair towards 1.3678(Lower BB).

Recommendation: Good to buy around 1.3760, with stop loss of 1.3660 and target price of 1.3850