FxWirePro: USD/CAD extends gains, faces 50%fib resistance

• USD/CAD strengthened on Tuesday as  lower oil prices and sdow beat Canadian economic data weighed on loonie .

• Canada’s services sector stayed in contraction in December, with trade uncertainty weighing on jobs and client spending, PMI data showed.

• The Business Activity Index rose to 46.5 from 44.3 in November but stayed below the 50 expansion threshold.

• Canada's employment report for December, due on Friday, is expected to show the economy shedding 5,000 jobs and the unemployment rate ticking up to 6.6% from 6.5% in November.

•Oil prices fell 1.2% to $57.66 a barrel, as markets balanced expectations of ample global supply against uncertainty over Venezuelan crude output.

•  Immediate resistance is located at 1.3883 (50%fib), any close above will push the pair towards 1.3914(Higher BB).

• Support is seen at 1.3778(38.2%fib) and break below could take the pair towards 1.3752(SMA20).

Recommendation: Good to buy  around 1.3800, with stop loss of 1.3720 and target price of 1.3880