• USD/CAD hit five month low on Monday as weaker greenback and higher oil price boosted Canadian dollar.
• Oil prices surged nearly 3% on Monday due to heightened supply concerns, fueled by escalating conflict in the Middle East and production cuts in Libya.
• The focus will be on the U.S. personal consumption and gross domestic product estimates expected later in the week.
• Technical signals are bearish as RSI is at 24, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.3514 (38.2%fib), any close above will push the pair towards 1.3560 (50%fib).
• Support is seen at 1.3468(23.6%fib) and break below could take the pair towards 1.3414(Lower BB).
Recommendation: Good to sell around 1.3490, with stop loss of 1.3560 and target price of 1.3400
