FxWirePro: USD/CAD edges lower as oil rally strengthens Loonie

  ·  USD/CAD edged lower on  Monday as the commodity-linked Canadian dollar strengthened as oil prices rose on supply fears as the Strait of Hormuz stayed largely closed.

  ·  Crude oil prices climbed almost 3% after President Trump warned the Iran ceasefire was close to collapsing.

•    President Donald Trump’s swift rejection of Iran’s response to a U.S. peace proposal raised concerns that the 10-week conflict could continue, keeping shipping through the Strait of Hormuz disrupted and pushing oil prices higher.

•Trump is expected to meet his Chinese counterpart Xi Jinping later in the week, with trade and Iran among the items on the agenda.

•  The Bank of Canada held its key interest rate steady last month, but Governor Tiff Macklem warned that if high oil prices begin driving inflation, the central bank may need to consider back-to-back rate hikes.

• Immediate resistance is located at 1.3736(Higher BB), any close above will push the pair towards 1.3793(50%fib).

• Support is seen at 1.3651(38.2%fib) and break below could take the pair towards 1.3587(Lower BB).

Recommendation: Good to sell around 1.3680, with stop loss of 1.3750 and target price of 1.3620