The tracing image cannot be rotated. When you import the tracing image, it imports the right way up for your canvas orientation. If it looks wrong, your canvas will be at the wrong orientation. Save your painting ( without the tracing image ) to your gallery, then tap one of the rotate buttons in the gallery to get the orientation you want. Open the painting, then load your tracing image.
If you're still having problems please let us know in as much detail as possible what orientation your painting is in the gallery, and a detailed description of how your tracing image loads.
Resident Bug-Hunter and Support Guy