USD/CAD is currently holding near its 200-day SMA but the formation of an ascending triangle from the start of this month has made the situation ripe for a jump on Tuesday, especially ahead of key data from the US and Canada.
MACD on the 8-hour chart suggests bullishness for the pair, which is also supported fundamentally with most analysts await a better consumer confidence reading (November) for the US while they expect Canadian data to show its GDP grew at a slower pace in September quarter compared with the previous quarter.
If a weak-euro sentiment supports the greenback, the 1.0270 (R1) immediate resistance could prove a weak one for the pair and it could rally to the 1.030-035 region. The pair will then require strong reasons to rise further to its next target near 1.040 (R3).
If Tuseday's data surprise market on the other side, 1.013 will form an immediate support (S1) for USD/CAD, and further down, 1.0075 (S2) will be a stop before it falls to the parity level again.