FxWirePro: USD/CAD holds in tight range amid tariff tensions

• USD/CAD traded within a narrow range on Tuesday as ongoing concerns over U.S.-Canada tariff tensions kept market participants cautious and sidelined.

• Trump and Canadian PM Carney are set to talk after the U.S. imposed a 35% tariff on non-USMCA goods, a Canadian official said..

•  The market is also focused on President Donald Trump's nominations to the Federal Reserve Board after the resignation of Fed Governor Adriana Kugler last Friday as well as his choice for commissioner of Bureau of Labor Statistics.

• Data showed U.S. services activity was flat in July, with stable orders, weaker employment, and the sharpest rise in input costs in nearly three years.

• The ISM non-manufacturing PMI fell to 50.1 in July from 50.8 in June, the Institute for Supply Management reported Tuesday.

.  • Separate data showed Canada's merchandise trade deficit widened in June to C$5.9 billion ($4.24 billion) with imports outpacing exports.

• Immediate resistance is located at 1.3878(50%fib), any close above will push the pair towards 1.3928(Higher BB).

• Support is seen at 1.3743 (38.2%fib) and break below could take the pair towards 1.3723(SMA 20).

Recommendation: Good to buy around 1.3770, with stop loss of 1.3650 and target price of 1.3860