• USD/CAD dipped on Friday as higher oil prices and upbeat domestic factory data supported loonie.
• Canadian factory sales rose 0.1% in June, marking a fifth straight monthly gain, while sales volumes increased 1.2%. Wholesale trade also climbed 2.8%.
• The price of oil settled 1.4% higher at $82.40 a barrel after the U.S. threatened an indefinite naval blockade of Iran, raising concerns about disruptions to global oil supplies.
• Separate data showed that U.S. retail sales fell 0.6% last month after an unrevised 0.2% increase in June, missing economists’ expectations for a 0.1% rise.
• Meanwhile, Traders also eyed U.S.-Iran tensions and efforts to reopen the Strait of Hormuz, while oil prices rose on renewed tanker attacks and escalating rhetoric between Washington and Tehran..
• Immediate resistance is located at 1.4049(SMA 20), any close above will push the pair towards 1.4070(38.2%fib.).
• Support is seen at 1.3874(38.2%fib) and break below could take the pair towards 1.3843( Lower BB).
Recommendation: Good to sell around 1.3900 with stop loss of 1.4000 and target price of 1.3830
