FxWirePro: USD/CAD gains on dollar strength and weaker Canadian housing activity

• USD/CAD strengthened on Tuesday as stronger greenback and  weak Canadian homes sales data weighed on Canadian dollar.

• The U.S. dollar was firmer across the board as surging oil prices lifted Treasury yields and reinforced expectations that the Fed will hike interest rates on Wednesday.

• Canadian home sales fell 0.7% month-over-month in August as increased mortgage rates and rising economic uncertainty weighed on activity.

• Investors' attention  now is  turning to the Federal Reserve, with traders anticipating at least a quarter-point hike.

• Traders are pricing in more than a 90% chance of a Fed rate hike on Wednesday, according to CME Group's FedWatch ​tool..

           
•  Immediate resistance is located at 1.3950 (Higher BB), any close above will push the pair towards 1.4046 (38.2%fib.).

• Support is seen at 1.3896 (50%fib) and break below could take the pair towards 1.3835(SMA 20).

Recommendation: Good to buy  around 1.3900 with stop loss of 1.3850 and target price of 1.3970