• USD/CAD dipped on Monday as weaker greenback and higher oil prices boosted commodity liked Canadian dollar
• Oil prices, a key Canadian export, rose 2.3% to $57.82 a barrel after the U.S. Coast Guard pursued an oil tanker near Venezuela and Ukraine damaged Russian vessels and piers, heightening supply disruption risks.
• The dollar index slid 0.4% to 98.3 , led by losses against the euro and yen. The index was on course to post its biggest yearly fall in eight years.
• The attention of data-watchers now turns to Tuesday’s release of October GDP, which is expected to provide a clearer snapshot of recent economic momentum.
• Analysts expect Canadian GDP to contract by 0.2% in October, reinforcing signs of a slowing economy as ongoing trade uncertainty continues to weigh on growth and business activity.
• Immediate resistance is located at 1.3839(38.2%fb), any close above will push the pair towards 1.3873(SMA 20).
• Support is seen at 1.3722(23.6%fb) and break below could take the pair towards 1.3655(Lower BB).
Recommendation: Good to sell around 1.3760, with stop loss of 1.3850 and target price of 1.3680
