FxWirePro: Loonie trades higher on broad based US dollar buying and weak oil price, good to buy on dips

USDCAD has recovered sharply more than 80 pips form yesterday’s low of 1.31876. The pair was trading slightly lower on Friday after slight better than expected Canadian inflation data. The pair has formed almost minor double bottom around 1.31800. It is currently trading around 1.32567. Crude oil prices have lost more than 30% from high and Brent prices slipped below $60 on Friday. Canada is largest exporter of crude and declining in prices is putting pressure on Canadian dollar.

On the lower side, near term major support is around 1.31750 (trend line support) and any break below will drag the pair till 1.3125/1.3070. The minor support is around 1.3214 (200 H MA).

The near term resistance is around 1.32650 and any violation above targets 1.3300/1.3320.Any break above 1.3380 confirms bullish continuation.

It is good to buy on dips around 1.3260 with SL around 1.3225 for the TP of 1.3320.