• USD/CAD steadied around 1.4080 on Tuesday as lower oil price and stronger greenback weighed on loonie
•Oil extended losses on Tuesday, falling over 1%, after OPEC+ opted to postpone output hikes in early 2026, while disappointing factory data and a firm dollar fueled concerns about slowing demand growth
•The U.S. dollar advanced as investors adjusted to the reduced likelihood of a Fed rate cut next month, signaling expectations that policy will remain restrictive for longer.
• Fed officials have offered competing views of where the economy stands and the risks facing it in the absence of economic data suspended due to the U.S. government shutdown.
•Traders now price a 65% chance of a rate cut in December, compared with 94% a week earlier, CME FedWatch showed.
• At GMT 16:21,the dollar was up 0.19 % at 1.4083 against Canadian dollar.
• Immediate resistance is located at 1.4101(23.6%fib), any close above will push the pair towards 1.4142(23.6%fib).
• Support is seen at 1.4010(SMA 20) and break below could take the pair towards 1.3986 (38.2%fb).
Recommendation: Good to buy around 1.4070, with stop loss of 1.3950, and target price of 1.4150
