• USD/CAD dipped on Tuesday as the Canadian dollar firmed after Mark Carney’s budget passed a confidence vote in Ottawa.
• Prime Minister Mark Carney survived his first major hurdle on Monday, with Parliament narrowly passing his inaugural budget and averting the risk of another election within a year.
• The blueprint will double Canada’s deficit to counter U.S. tariffs and inject funding into defense and housing, marking a clear gamble on growth rather than austerity.
• Markets initially shrugged off the announcement, yet October’s softer 2.2% inflation reading provides policymakers with added room to maneuver.
• Immediate resistance is located at 1.4026(38.2%fib), any close above will push the pair towards 1.4136(23.6%fib).
• Support is seen at 1.3938(50%fb) and break below could take the pair towards 1.3908 (Lower BB).
Recommendation: Good to sell around 1.4030, with stop loss of 1.4100 and target price of 1.3950
