• USD/CAD rose higher on Monday as the Canadian dollar weakened as lower oil prices offset a weaker greenback.
•Oil prices fell as concerns over Russia and the Middle East were countered by oversupply jitters.
•Canada, a major energy exporter, remains highly sensitive to oil price fluctuations. Lower oil prices typically weigh on the loonie, as reduced energy revenues dampen demand for the Canadian dollar.
• This week, all eyes will be on Canada’s domestic GDP data, set for release on Friday. Economists and analysts are widely anticipating that the data will reflect continued economic softness, as the country grapples with trade uncertainties and subdued growth momentum.
• The report is expected to provide further insight into the health of the Canadian economy and could influence the Bank of Canada’s policy outlook in the near term.Top of FormBottom of Form
• Immediate resistance is located at 1.3877(50%fib), any close above will push the pair towards 1.3889(Higher BB).
• Support is seen at 1.3798(SMA 20) and break below could take the pair towards 1.3733( (38.2%fib).
Recommendation: Good to buy around 1.3800, with stop loss of 1.3720 and target price of 1.3860
