FxWirePro: USD/CAD downside pressure builds, key support level in focus

• USD/CAD dipped on Monday   as oil prices rose and investors executed month-end hedging transactions.

• Investors often execute currency transactions around the end of the month to manage changes in their foreign exchange exposure due to portfolio movements.

•Oil prices, a key Canadian export, rose as renewed U.S.-Iran military action raised concerns over global supply disruptions. U.S. crude futures were up 2.8% at $85.72 a barrel.

•Investors expect the Bank of Canada to keep its benchmark interest rate unchanged at 2.25% on Wednesday, as rising U.S.-Canada trade tensions offset stronger-than-expected second-quarter economic growth.
           
•  Immediate resistance is located at 1.3904(50%fib), any close above will push the pair towards 1.4000(Psychological level.).

• Support is seen at 1.3731(38.25fib) and break below could take the pair towards 1.3752(32.6% fib).

Recommendation: Good to sell around 1.3860  with stop loss of 1.3920 and target price of 1.3800