FxWirePro: USD/CAD rises on strong dollar and trade deal developments

• USD/CAD rose on Tuesday as the dollar strengthened, with investors turning their focus to upcoming U.S. economic data and the Fed’s policy decision later this week.

• The U.S. reached a framework trade deal with the European Union, setting a 15% import tariff on most EU goods half the originally proposed rate.

• The trade pact was finalized just one week after the United States reached a separate agreement with Japan, highlighting Washington’s continued efforts to strengthen international trade ties.

• Investors await the Fed’s policy decision this week, with rates expected to remain unchanged despite pressure from President Trump to cut borrowing costs.

• In addition to the Fed meeting, investors await PCE and payrolls data to evaluate inflation and labor market effects from recent tariffs.

• Immediate resistance is located at 1.3804(Higher BB), any close above will push the pair towards 1.3843(50%fib).

• Support is seen at 1.3717(38.2%fib) and break below could take the pair towards 1.3678(SMA 20).

Recommendation: Good to buy around 1.3760, with stop loss of 1.3660 and target price of 1.3800