• USD/CAD strengthened on Monday as oil prices fell sharply and investors awaited a Federal Reserve interest rate decision this week.
• Oil, one of Canada's key exports, plunged 7.2% to $82.85 a barrel after the U.S. and Iran paused strikes, boosting hopes of easing tensions and the resumption of shipping through the Strait of Hormuz.
• The Fed's policy decision is due on Wednesday, with a 62% chance of rates being left unchanged, according to CME FedWatch.
• Canadian GDP data for May, due on Friday, could offer further clues on the state of the domestic economy. Analysts expect a gain of 0.2%.
• Immediate resistance is located at 1.4132(SMA 20), any close above will push the pair towards 1.420(23.6%fib).
• Support is seen at 1.4065 (38.2%fib) and break below could take the pair towards 1.983(Lower BB).
Recommendation: Good to buy around 1.4110 with stop loss of 1.4000 and target price of 1.4200
