• USD/CAD steadied around the 1.4200 level on Monday as investors monitored the implementation of the interim peace agreement between the United States and Iran.
• Talks aimed at restoring diplomacy in the Middle East come after days of escalating strikes following an Iranian attack on a cargo vessel in the Strait of Hormuz, with both parties claiming the other had broken the interim ceasefire..
• Canadian gross domestic product data, due on Tuesday, is expected to show the economy expanded 0.4% in April.
• The data could shape expectations for the Bank of Canada's policy path, with investors also looking ahead to Governor Tiff Macklem's appearance on Wednesday at the European Central Bank's annual central banking forum.
• Oil prices rose 2.3% to $70.79 a barrel, supporting Canada's export outlook, after fresh U.S.-Iran attacks exposed the fragility of their interim peace agreement.
.• Immediate resistance is located at 1.4254(23.6%fib), any close above will push the pair towards 1.4286(Higher BB).
• Support is seen at 1.4113(38.2%fib) and break below could take the pair towards 1.4062(SMA20)
Recommendation: Good to buy around 1.4200 with stop loss of 1.4120and target price of 1.4280
