• USD/CAD edged lower on Monday as expectations of a U.S.-China trade deal and recovery oil price supported Canadian dollar .
• U.S. President Donald Trump and China’s Xi Jinping will meet on Thursday to finalize a deal framework aimed at halting higher U.S. tariffs and China’s rare earth export controls.
• Meanwhile, U.S. President Trump announced on Saturday an additional 10% tariff on Canadian imports.
• Canadian Prime Minister Mark Carney is scheduled to meet Chinese President Xi Jinping later this week and has expressed willingness to engage in trade talks with Trump.
•Investors will also focus on central bank policy decisions this week, with both the Bank of Canada and the U.S. Federal Reserve widely expected to implement a quarter-point interest rate cut.
• Immediate resistance is located at 1.4067(23.6%fib), any close above will push the pair towards 1.4103(Higher BB).
• Support is seen at 1.3993(SMA20) and break below could take the pair towards 1.3969(38.2%fib).
Recommendation: Good to buy around 1.3990, with stop loss of 1.3920 and target price of 1.4100
