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The USD/CAD currency pair continued its upward recovery on Tuesday, building momentum from its recent three-month low near the 1.3730 level. The spot price is attracting buyers for the second consecutive trading session, driven by technical buying pressure and shifting short-term market dynamics. Traders are closely monitoring key chart levels as the recovery gathers pace. From a technical perspective, the pair's ability to move above the 38.2% Fibonacci retracement level suggests that short-term bearish pressure may be easing. A sustained break above this technical resistance could pave the way for a test of the psychological 1.3900 barrier, encouraging momentum traders to enter long positions. Market participants should watch for upcoming economic data releases from both the United States and Canada to see if fundamental drivers support the technical breakout. Key inflation figures, labor market reports, and central bank commentary will likely dictate whether USD/CAD can maintain its bullish trajectory or resume its broader downtrend.
