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FxWirePro: USD/ CAD sinks five-month low with plenty more downside potential

• USD/CAD hit five month low  on Monday  as weaker  greenback and higher oil price boosted Canadian dollar.

• Oil prices surged nearly 3% on Monday due to heightened supply concerns, fueled by escalating conflict in the Middle East and production cuts in Libya.

• The focus will be on the U.S. personal consumption and gross domestic product estimates expected later in the week.

• Technical signals are bearish as RSI is at 24, daily momentum studies  5, 9 and 10 DMAs are trending down.
 
•  Immediate resistance is located at 1.3514 (38.2%fib), any close above will push the pair towards 1.3560 (50%fib).

• Support is seen at 1.3468(23.6%fib) and break below could take the pair towards 1.3414(Lower BB).

Recommendation: Good to sell  around 1.3490, with stop loss of 1.3560 and target price of 1.3400

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