Canadian Dollar hesitates as Oil falls amid Hormuz reopening talks

The Canadian Dollar (CAD) remained largely unchanged against the US Dollar (USD) on Tuesday as Tehran's proposal to reopen the Strait of Hormuz balanced out the decrease in Crude prices. The USD/CAD pair was trading at 1.4035, having retreated from its one-and-a-half-month peak of 1.4050. Iran proposed to reopen the strategic waterway within seven days following the withdrawal of the US blockade on its ports, according to a Kyodo News report.

This news prompted renewed optimism about resolving the conflict, which had been ongoing for seven months. The USD/CAD pair maintains a positive outlook with technical indicators, including the Relative Strength Index (14) and Moving Average Convergence Divergence (MACD), signaling a possible Gartley pattern towards the 1.4100 level or higher.

Immediate resistance is expected around the intra-day high of 1.4050, coinciding with the 61.8% Fibonacci retracement of the June-August decline. The expected support levels are near the September 16-18 high points at 1.4000, followed by the September 2 high at 1.3930.