FxWirePro: USD/CAD steadies around 1.3835,retains bid tone

·  USD/CAD steadied around 1.3835 on Wednesday as investors cautiously weighed reports that a draft U.S.-Iran agreement could reopen the Strait of Hormuz.

· Iran's state TV said a draft U.S.-Iran framework would restore commercial shipping through the Strait of Hormuz to pre-war levels within a month..

· Oil prices fell more than 5% on the news, though markets stayed cautious as assets continued to swing between hopes of de-escalation and fears of renewed conflict.

•    Investors will also watch the first round of formal U.S.-Mexico-Canada trade deal negotiations set to begin in Mexico next week.

• The Trump administration said on Wednesday it will begin the first of three negotiation rounds with Mexico this week to revamp the North American trade deal, with no mention of talks with Canada..

• Immediate resistance is located at 1.3854(23.6%fib), any close above will push the pair towards 1.3898(HIigher BB).

• Support is seen at 1.3805(Daily low) and break below could take the pair towards 1.3782(50%fib).

Recommendation: Good to buy around 1.3800, with stop loss of 1.3720 and target price of 1.3880