FxWirePro: USD/CAD advances as loonie dips on softer Inflation and Middle East uncertainty

• USD/CAD advanced  on Monday as Canadaian dollar dipped as investors assessed escalating U.S.-Iran tensions in the Middle East and a softer-than-expected domestic inflation reading.

•  Canada's ​annual inflation rate cooled to 2.8% in June from a 29-month high of ​3.2% in May, as gasoline costs fell sharply. Measures of underlying inflation closely watched by the BoC also eased.

•The Consumer Price Index on a month on month basis decelerated by 0.4%, Statistics Canada ​said.

•  Last month, Canada's consumer price index rose to a 29-month high of 3.2%, exceeding the Bank of Canada's 3% upper inflation target for the first time in more than two years.

•The price of oil, one of Canada's key exports, slipped 0.4% to $82.16 a barrel. Optimism over renewed U.S.-Iran nuclear talks was tempered after Yemen's Iran-backed Houthis announced a naval blockade on Saudi Arabia.

•  Immediate resistance is located at 1.4090(38.2%fib), any close above will push the pair towards 1.4151(SMA 20).

• Support is seen at 1.4018 (Lower BB) and break below could take the pair towards 1.3978(Lower BB).

Recommendation: Good to buy around 1.4060 with stop loss of 1.4000,  and target price of 1.4120