• USD/CAD advanced on Monday as a sharp decline of more than 3% in oil prices weakened the Canadian dollar.
• Oil prices fell towards the $100-a-barrel mark and touched an 11-day low as investors hoped for diplomatic progress on the Iran war at this week’s UN meeting and monitored a partial recovery in Saudi shipments..
• Investors are turning their attention to Bank of Canada Governor Tiff Macklem’s speech later Monday for signals on the central bank’s upcoming policy path...
• Retail sales data due later this week will also be closely watched for indications of consumer spending as concerns over inflation intensify.
•Investors see a roughly 60% chance the BoC would hike at its next policy announcement on October 28.
• Immediate resistance is located at 1.4057(Higher), any close above will push the pair towards 1.4095(38.2%fib.).
• Support is seen at 1.3991(50%fib) and break below could take the pair towards 1.3879(61.8%fib).
Recommendation: Good to buy around 1.4000 with stop loss of 1.3950 and target price of 1.4080
