• USD/CAD strengthened on Monday as Canadian dollar weakened ahead of Bank of Canada policy decision this .
• Investors will closely watch the Bank of Canada’s interest rate decision due on Wednesday for cues on the policy outlook.
•The Bank of Canada will likely to hold its key overnight rate at 2.25% on Wednesday and for the rest of the year.
•Attention is also turning to the approaching July 1 USMCA deadline, with uncertainty surrounding trade negotiations posing a potential headwind for the Canadian dollar.
•The price of oil one of Canada's major exports, pared its earlier gains to settle 0.8% higher at $91.30 a barrel after Iran and Israel said they had halted attacks on each other.
• Immediate resistance is located at 1.3955(23.6%fib), any close above will push the pair towards 1.4000(Psychological level).
• Support is seen at 1.3924(Daily low) and break below could take the pair towards 1.3862(38.2%fib).
Recommendation: Good to buy around 1.3920 with stop loss of 1.3870 and target price of 1.3980
