FxWirePro: USD/CAD hits 7-week –low, scope for further downside

• USD/CAD hit 7-week -low on Monday  as higher oil price and weaker greenback boosted commodity linked Canadian dollar.

• The price of oil   one of Canada's major exports, rose 2% to $96.29 a barrel as shipments through the Strait of Hormuz remained limited, keeping global oil supplies tight.

•The U.S. dollar fell against major currencies on Monday as investors weighed a diplomatic impasse in U.S.-Iran negotiations and braced ​for a week packed with central bank decisions

• The Bank of Canada is expected to keep its benchmark interest rate on hold at 2.25% on Wednesday as the oil price surge from the war is a temporary shock unlikely to have a lasting impact on inflation expectations.

•  Immediate resistance is located at 1.3681(Daily high), any close above will push the pair towards 1.3790 (50%fib).

• Support is seen at 1.3608(38.2%fib) and break below could take the pair towards 1.3576(Lower BB).

Recommendation: Good to sell around 1.3650, with stop loss of 1.3750 and target price of 1.3560