• USD/CAD inched up on Monday but gains remained limited as investors kept a close eye on U.S.-China trade talks aimed at reducing tensions between the world’s two largest economies.
• Top U.S. and Chinese officials are set to meet in London to resolve disputes over last month’s Geneva agreement that temporarily eased trade tensions.
• The talks come at a critical moment, as China battles deflation and U.S. trade uncertainty weighs on business and consumer sentiment, leading investors to rethink the dollar’s safe-haven appeal.
• Meanwhile, focus also shifted to Wednesday’s U.S. inflation data, which could influence expectations for Fed rate cuts. The central bank remains in a blackout period ahead of its June 18 policy decision..
. •At GMT 14:33, the pair was trading up 0.06 percent at 1.3703
• Immediate resistance is located at 1.3791(38.2%fib), any close above will push the pair towards 1.3842(May 30th high).
• Support is seen at 1.3644(23.6%fib) and breakbelow could take the pair towards 1.3602(Lower BB).
Recommendation: Good to sell around 1.3720, with stop loss of 1.3800 and target price of 1.3650
