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

• USD/CAD strengthened on Monday as the U.S. dollar firmed broadly, driven by safe-haven demand after renewed Middle East tensions.

• Markets reacted to weekend developments, including U.S.-Iran exchanges and escalating conflict risks, which revived concerns over energy supply disruptions and supported the greenback.

• Investors also reassessed the outlook for Middle East peace talks, with geopolitical uncertainty keeping risk sentiment fragile and reinforcing demand for the USD across major currencies

. Oil prices rose more than 3% after fresh U.S.-Iran strikes and Israel’s escalation in Lebanon, raising fears of widening Middle East conflict and potential supply disruptions.

• On the data front, Canada’s S&P Global Manufacturing PMI slipped to 52.9 in May from 53.3 previously, still signaling expansion but at a slower pace.

•  Immediate resistance is located at 1.3867 (38.2%fib), any close above will push the pair towards 1.3882 (Higher BB).

• Support is seen at 1.3803 (50%fib) and break below could take the pair towards 1.3756(SMA 20).

Recommendation: Good to buy around 1.3830, with stop loss of 1.3750  and target price of 1.3880