• USD/CAD edged lower on Tuesday as higher oil price offset stronger greenback
• Oil prices were steady on Tuesday as investors weighed fading hopes of a Russia-Ukraine peace deal and rising Middle East tensions around Yemen.
• Looking ahead, Federal Reserve will release minutes from its December meeting later on Tuesday, with markets pricing in two rate cuts next year.
• The minutes are expected to reveal policy differences over a third straight rate cut and point to a near-term pause in 2026.
• Trading volumes are likely to stay light in the holiday-shortened week, with U.S. markets closed on Thursday for New Year’s Day.
• Immediate resistance is located at 1.3720(38.2%fb), any close above will push the pair towards 1.3788(SMA20).
• Support is seen at 1.3652(23.6%fib) and break below could take the pair towards 1.3549 (Lower BB).
Recommendation: Good to sell around 1.3700, with stop loss of 1.3750 and target price of 1.3620
