FxWirePro: USD/CAD loses momentum but bullish setup remains

• USD/CAD initially gained on Monday but later gave up some ground as crude oil prices swung sharply and risk-off sentiment prevailed following U.S. military strikes on Iran over the weekend.

• The Canadian dollar, closely tied to oil, saw mixed performance as markets weighed geopolitical risks against commodity price movements.

• Oil prices slipped 0.3% in volatile trade as investors remained on edge, awaiting Iran’s response to recent U.S. strikes.

  • Market participants are on edge over potential oil price spikes, fearing that an Iranian retaliation could involve closing the Strait of Hormuz—a key chokepoint that handles about 20% of the world’s crude oil shipments.

•At GMT 14:40, the  dollar was trading up 0.06% at 1.3743 against Canadian  dollar   .

• Immediate resistance is located at 1.3851(50%fib), any close above will push the pair towards 1.3881(Higher BB).

• Support is seen at 1.3728(38.2%fib) and break below could take the pair towards 1.3575(23.6%fib).

Recommendation: Good to buy around 1.3720, with stop loss of 1.3630 and target price of 1.3800