FxWirePro: Canadian dollar recovered slightly as US bond yield shows minor decline, good to buy on dips

USD/CAD has halted its eight day of bullishness and shown a minor decline of more than 50 pips from the high of 1.30717. The slight decline in US yield and dip in crude oil price has supported Canadian dollar.It is currently around 1.30073.

US CPI data came at slightly weaker than expected. Headline CPI came at 0.1% compared to forecast of 0.2% and annual CPI came at 2.3% less from 2.7% previous month. US 10 year bond yield shown a minor selling till 3.12% form the high of 3.25% and is currently trading around 3.17% and 2 year yield also lost more than 4% till 2.83% and is trading around 2.86%.

Crude oil has lost more than $3 after US EIA inventory report which shows that inventories climbed by 6.0 million barrels in the week of Oct 5 compared to analyst forecast of an increase of 2.3 million barrels. Any daily close below $72 confirms minor weakness and decline till $70 is possible.

On the higher side near term resistance is around 1.3050 (100 -day MA) and any close above targets 1.3080/1.3175.

The near term support is around 1.3000 and any violation below targets 1.2965/1.2920/1.2870 (200- day MA)/1.27800. Any break below 1.27800 confirms bullish continuation.

It is good to buy on dips around 1.3000 with SL around 1.2960 for the TP of 1.3080/1.3175.