FxWirePro: USD/CAD slides as oil rally strengthens Loonie

  USD/CAD slipped Monday as the commodity-linked Canadian dollar strengthened after oil prices surged on news of a U.S. blockade of Iranian ports following failed peace talks..

•    Brent crude rose about 6% for June delivery to above $100 a barrel as the U.S. Navy prepared to block ships.

•  U.S. President Donald Trump said on Sunday that U.S. forces would also intercept every vessel in international waters that had paid a toll to Iran.

•  Shipping activity in the region showed signs of strain, with two Iranian-linked tankers departing the Gulf while others avoided the Strait of Hormuz, a key passage that handles roughly 20% of global oil and LNG flows.

•  Spot gold   and silver   hit a near one-week low, down 0.6% and 2%, respectively, as higher oil prices stoked inflation fears and traders trimmed their expectations for Federal Reserve rate cuts this year.

• Immediate resistance is located at 1.3846(38.2%fib), any close above will push the pair towards 1.3881(Daily high).

• Support is seen at 1.3791(Daily low) and break below could take the pair towards 1.3744(50%fib).

Recommendation: Good to sell around 1.3800, with stop loss of 1.3900 and target price of 1.3720