• USD/CAD rose on Tuesday as US dollar strengthened on expectations of a less dovish Federal Reserve and safe-haven demand.
•Rising geopolitical worries also led investors to a flight towards safe-haven dollar.
• A robust jobs report last week added validity to Fed Chair Jerome Powell's assertions that the central bank would remain with its normal quarter-point rate cut.
• On the data front, Canada's trade deficit climbed to CAD 1.10 billion in August, up from a revised CAD 0.29 billion in July and exceeding expectations of CAD 0.5 billion.
• Immediate resistance is located at 1.3678(23.6%fib), any close above will push the pair towards 1.3691(Higher BB).
• Support is seen at 1.3630 (38.2%fib) and break below could take the pair towards 1.3613(Daily low).
Recommendation: Good to buy around 1.3640, with stop loss of 1.3560 and target price of 1.3700
