FxWirePro: USD/CAD recovers from early dip but upside is limited

• USD/CAD initially dipped but recovered ground on Monday as the safe-haven dollar weakened after Donald Trump said the U.S. would delay strikes on Iran’s energy infrastructure.

•U.S. President Donald Trump said the U.S. and Iran held talks over the past day, reaching “major points of agreement,” and suggested a deal to end the war could be reached soon..

• The remarks came just hours before a deadline that risked further escalation in the conflict, now in its fourth week.

• The price of oil, one of Canada's major exports, settled 10.3% lower at $88.13 a barrel, easing some concerns that higher inflation could lead to tighter monetary policy globally.

• Money markets now expect at least two rate hikes from the Bank of Canada this year, shifting from earlier expectations of steady policy before the conflict.

•  Immediate resistance is located at 1.3759(50%fib), any close above will push the pair towards 1.3798(50%fib ).

• Support is seen at 1.3667(SMA 20) and break below could take the pair towards 1.3645 (38.2%fib).

Recommendation: Good to sell   around 1.3740, with stop loss of 1.3850  and target price of 1.3650