• USD/CAD steadied around 1.3970 on Monday as lower commodities prices weighed on Canadian dollar .
• Gold prices fell sharply as reports of Israel nearing a ceasefire with Hezbollah, coupled with Trump’s Treasury Secretary pick, tarnished demand for the safe-haven precious metal.
• Oil prices fell more than $2 per barrel after reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict.
•Looking ahead, key events this week will be the release of October Personal Consumption Expenditures (PCE), the latest GDP estimate, and U.S. Federal Reserve minutes are due on Tuesday.
• Technical highlight upside risks for USD/CAD, with momentum studies, 5, 10 and 11 DMAs tracking north.
• Immediate resistance is located at 1.3992(38.2%fib), any close above will push the pair towards 1.4062(Nov 19th high).
• Support is seen at 1.3949 (21SMA) and break below could take the pair towards 1.3892(50%fib).
Recommendation: Good to buy around 1.3970, with stop loss of 1.3900 and target price of 1.4060
