FxWirePro: USD/CAD bulls continue to hold the higher ground

• USD/CAD strengthened on Tuesday    as domestic data showed that inflation accelerated less than expected in April and the greenback posted broad-based gains.

• Canada’s CPI rose 2.8% year-on-year in April, up from 2.4% in March, driven mainly by higher gasoline prices as the Iran war pushed global oil prices higher..

• Analysts expected 3.1% for the headline rate, while underlying inflation measures closely watched by the Bank of Canada also remained in focus.

• Geopolitical concerns eased after U.S. President Donald Trump said there was a “very good chance” of reaching a deal on Iran’s nuclear program, following a pause in planned military action..

• Oil prices were little changed at around $108.65 a barrel, holding near their early-May highs, as Canada’s key export commodity stayed range-bound.

•  Immediate resistance is located at 1.3774(Higher BB), any close above will push the pair towards 1.3809 (50%fib).

• Support is seen at 1.3733 (50%fib) and break below could take the pair towards 1.35679(Lower BB).

Recommendation: Good to buy around 1.3730, with stop loss of 1.3640 and target price of 1.3800