CAD Trades Flat as Oil Prices Decline Amid Hormuz Reopening Talks
The Canadian Dollar has been trading flat against the US Dollar on Tuesday as the risk appetite triggered by Iran's proposal to reopen the Strait of Hormuz offsets the decline in Crude prices. The USD/CAD pair is currently at 1.4035, struggling to find acceptance below 1.4030.
Iran has offered to reopen the Strait of Hormuz within seven days after the US lifts its blockade on Iran's ports, according to a report by Kyodo News citing a senior Iranian government official. This news comes after US President Donald Trump affirmed that he is willing to meet Iranian President Masoud Pezeshkian at the UN General Assembly in New York.
The technical analysis suggests that the USD/CAD pair maintains its near-term constructive structure, with recent price action highlighting a potential Gartley pattern aiming for the 1.4100 area or higher. Momentum indicators in the daily chart reinforce this view, as the Relative Strength Index (14) is high but below overbought territory.