FxWirePro: USD/CAD dips as weaker dollar gives bears some traction

•  USD/CAD slipped Monday as  investors remained hopeful of a diplomatic solution to the war in the Middle East and despite domestic data that showed inflation heating up less than expected..

•    The uneasy ceasefire between the United States and Iran frayed after the U.S. announced it had seized an Iranian cargo ship, prompting vows of retaliation from Iran, which over the weekend said it would not participate in a second round of negotiations.

•  Canada's annual inflation rate rose to 2.4% in March from 1.8% in February as higher crude oil costs drove up gasoline prices. Analysts had expected inflation to climb to 2.6%..

•  A survey from the central bank showed that Canadian business sentiment had started to rise before the war, but a smaller sample of firms exposed to the conflict later indicated many expected higher input prices.

•  Crude prices, a key driver  , jumped over 5% to $95 a barrel as shipments through the key Strait of Hormuz were at a virtual standstill.

• Immediate resistance is located at 1.3710(Daily high), any close above will push the pair towards 1.3767(50%fib).

• Support is seen at 1.3641(38.2%fib) and break below could take the pair towards 1.3590(Lower BB).

Recommendation: Good to sell around 1.3700, with stop loss of 1.3900 and target price of 1.3630