FxWirePro: USD/CAD extends advance as stronger dollar and falling oil weighs on loonie

 • USD/CAD extended gains on Tuesday as a stronger U.S. dollar and falling oil prices weighed on the Canadian dollar.

• Oil prices fell more than 2% to a two-week low after Iran proposed reopening the Strait of Hormuz within seven days if the United States eases military pressure.

• Iran and the United States also signaled the possibility of reviving negotiations to end their conflict, with the presidents of both countries due to attend the U.N. General Assembly in New York.

• Disruptions in the Strait of Hormuz have strained global oil supplies and added to inflationary pressures, prompting investors to quickly reprice assets on signs of any shift in the geopolitical outlook.

• On the data front, investors will also monitor Canadian retail sales data due Thursday for further clues about the health of consumer spending.

               
•  Immediate resistance is located at 1.4097(38.2%fib), any close above will push the pair towards 1.4133 (July 28th high.).

• Support is seen at 1.4028 (Daily low) and break below could take the pair towards 1.3986(50%fib).

Recommendation: Good to buy  around 1.4050 with stop loss of 1.3950 and target price of 1.4120