• USD/CAD rose sharply on Tuesday as Canadian dollar was hit by internal political uncertainty and a widening US-Canada widening bond yield .
• On the data front, Canada's annual inflation dipped to 1.9% in November from 2% in October. Despite higher core inflation, markets anticipate another rate cut from the Bank of Canada in January..
• Meanwhile, oil prices, a major Canadian export, fell 1.6% to $69.57 per barrel due to concerns over Chinese demand.
• At GMT 14:46, the pair was up 0.53% at 1.4310, marking its highest level nearly five-years.
• Immediate resistance is located at 1.4327 (23.6%fib), any close above will push the pair towards 1.4349(Higher BB).
• Support is seen at 1.4242(38.2%fib) and break below could take the pair towards 1.4173(50%fib).
Recommendation: Good to buy around 1.4280, with stop loss of 1.4200and target price of 1.4400
