USD/CAD edged higher on Friday as markets assessed weak Canadian jobs data and awaited U.S.-Iran peace talks, though the pair retained most of its weekly gains.
• Expectations of reduced hostilities in the Middle East improved after Israel revealed on Thursday it was seeking dialogue with Lebanon..
• Iran has flagged Israel’s persistent operations in Lebanon as a critical obstacle in its ceasefire pact with the U.S., which includes reopening the Strait of Hormuz through which nearly a fifth of the world’s energy flows.
• Oil futures edged higher as the Strait of Hormuz remained largely closed to shipping and concerns lingered over Saudi Arabia’s supply outlook.
•On the data front, Canada's economy added 14,100 jobs in March, roughly matching expectations, after shedding 83,900 in the prior month, while the unemployment rate held steady at 6.7%.
• Immediate resistance is located at 1.3841(Daily high), any close above will push the pair towards 1.3895(38.2%fib).
• Support is seen at 1.3798(50%fib) and break below could take the pair towards 1.3746(March 25th low).
Recommendation: Good to sell around 1.3840, with stop loss of 1.3900 and target price of 1.3780
