Rout in crude prices following the lift-off of Iran sanctions over the weekend dented the resource-linked loonie.
- Futures for WTI plunged 5.74% to trade at $29.41 per barrel, it's lowest since November 2003, while Brent futures lost 4.37% down to $29.53 per barrel, and it's weakest since February 2004.
- USD/CAD hit fresh multi-year highs at 1.4605 in early Asian hours and has since pared some losses to currently trade at 1.4520.
- Markets focus on BoC meet (due Wednesday), expectations on the mount for the c.bank to cut rates by 25bps following weak oil price.
- Immediate support is seen by 5-DMA at 1.4405, while resistance on the upside is at 1.4605 (session highs).
Recommendation: We would use dips around 1.45 as buying opportunities, SL: 1.44, TP: 1.4690 (Jan 1998 highs)