FxWirePro: USD/CAD falls as Israel-Iran truce reduces demand for greenback

• USD/CAD slipped  lower on Tuesday as greenback weakened after Middle East tensions eased following a ceasefire agreement between Israel and Iran.

•. U.S. President Donald Trump announced on Monday that Israel and Iran had agreed to a ceasefire, bringing an end to their 12-day conflict.

•. Markets reacted calmly to the ceasefire announcement between Israel and Iran, taking the de-escalation of geopolitical tensions largely in stride.

•   Oil prices dropped around 5% to a two-week low on Tuesday, as the Israel-Iran ceasefire eased concerns over potential supply disruptions in the Middle East.

  • On the data front, Canada’s annual inflation rate remained unchanged at 1.7% in May, as lower energy prices partly due to the removal of the consumer carbon levy—and slower rent increases helped keep inflation steady, Statistics Canada reported on Tuesday.

• Immediate resistance is located at 1.3750(38.2%fib), any close above will push the pair towards 1.3849(Higher BB).

• Support is seen at 1.3577(23.6%fib) and break below could take the pair towards 1.3537 (Lower BB).

Recommendation: Good to sell around 1.3720, with stop loss of 1.3820 and target price of 1.3650