• USD/CAD dipped on Monday as oil prices advanced after fresh military exchanges between the U.S. and Iran renewed worries over crude shipments through the Strait of Hormuz...
• U.S. and Iranian forces exchanged missile and drone strikes over the weekend, with Iran targeting U.S. bases in the Gulf and again declaring the Strait of Hormuz closed.
• The Bank of Canada is widely expected to leave its benchmark interest rate unchanged at 2.25% on Wednesday. Cooling underlying inflation has reduced the need for further policy tightening, while a rebound in economic activity following a technical recession has also lessened the case for additional monetary stimulus.
• Oil prices jumped more than 3% on Monday as renewed U.S.-Iran strikes raised fears of supply disruptions through the Strait of Hormuz..
• Immediate resistance is located at 1.4182(Daily high), any close above will push the pair towards 1.4262(23.6%fib).
• Support is seen at 1.4124(38.2%fib) and break below could take the pair towards 1.4104(38.2%fib).
Recommendation: Good to buy around 1.4150 with stop loss of 1.4000 and target price of 1.4240
