FxWirePro: USD/CAD sustains gains as uptrend remains strong

• USD/CAD strengthened on Wednesday as broad-based U.S. dollar demand and weaker commodity prices weighed on the Canadian dollar.

• Commodity prices fell on Thursday, led by a sharp drop in silver, as investors unwound earlier safe-haven positions following an easing in global geopolitical tensions..

• Silver tumbled as much as 15%, while oil prices dropped more than $1 per barrel after the United States and Iran agreed to hold talks, easing fears of an immediate escalation in tensions.

• Adding to the pressure on commodities was a stronger U.S. dollar, which climbed to a two-week high. A firmer dollar makes commodities priced in the currency more expensive for holders of other currencies, dampening demand.

• Oil prices fell but remained near multi-month highs, as investors closely monitored the progress of Iran talks amid concerns that any military conflict could disrupt supply from the key Middle East producing region.

•  Immediate resistance is located at 1.3703(50%fib), any close above will push the pair towards 1.3752(SMA 20).

• Support is seen at 1.3607(38.2%fib) and break below could take the pair towards 1.3491(Lower BB).

Recommendation: Good to buy around 1.3670, with stop loss of 1.3600 and target price of 1.3800