FxWirePro: USD/CAD climbs as dollar finds safety bid

• USD/CAD advanced on Thursday as escalating tensions in the Middle East fueled a wave of risk-off sentiment, driving demand for the safe-haven U.S. dollar.

•   The surge in geopolitical uncertainty overshadowed the typically supportive impact of rising oil prices on the Canadian dollar, limiting the loonie’s ability to capitalize on crude strength.

  • As a result, the usual correlation between oil strength and CAD appreciation has weakened, leaving the loonie struggling to gain traction even as energy markets rally.

• Brent crude futures were up $1.48, or 1.9%, to $78.18 a barrel by 1230 ET (1630 GMT). U.S. West Texas Intermediate crude for July was up $1.72, or 2.3%, at $76.86

•At GMT 17:13, the  dollar was trading up 0.24% at 1.3727 against Canadian  dollar   .

• Immediate resistance is located at 1.3752(38.2%fib), any close above will push the pair towards 1.3867(Higher BB).

• Support is seen at 1.3565(23.6%fib) and break below could take the pair towards 1.3541(Lower BB).

Recommendation: Good to buy around 1.3700, with stop loss of 1.3620 and target price of 1.3780