• USD/CAD hit 2 -1/2 year high on Monday as uncertain prospects for Middle East peace talks bolstered safe-haven demand for the greenback
• The US dollar held near a two-month high against a basket of major currencies as the US-Iran standoff pushed up oil prices and Treasury yields..
• Gold lost 3.7%, while US crude oil futures were trading 0.8% higher at $93.12 a barrel. Oil is one of Canada's major exports.
• Canadian GDP data for July, due on Tuesday, could help guide expectations for a Bank of Canada interest rate hike next month. Economists expect a flat reading compared to June..
• Immediate resistance is located at 1.4197(38.2%fib.). any close above will push the pair towards 1.4302(23.6%fib.).
• Support is seen at 1.4100 (50%fib) and break below could take the pair towards 1.4020(61.8%fib).
Recommendation: Good to buy around 1.3160 with stop loss of 1.3100 and target price of 1.3220


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