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FxWirePro: USD/CAD Daily Outlook

USD/CAD has halted its 6 days of continuous bullishness on account of jump in Crude oil prices and slight dip in US 10 year yield. The pair hits low of 1.29215 and shown a minor recovery. It is currently around 1.29583.

US 10 year bond yield shown a minor selling after hitting multiyear high at 3.25%. It is currently trading around 3.21%. The yield are expected to surge further as better than economic data will trigger Fed for further rate hike in coming months . Canadian housing starts came at 189000 slightly less compared to forecast of 203000. Markets eye US PPI and Canada building permits data to be released today for further direction.  

 

Crude oil has jumped more than $2 from the low of $73.10 on account of partial shutdown in the Gulf of Mexico. Markets eye US crude inventory data to be released today for further direction. Any break below $73 confirms minor weakness and decline till $71.65 (20- day MA) is possible.

 

On the higher side near term resistance is around 1.3018 and any violation 1.3055 (100- day MA)/1.3080.

 

The near term support is around 1.2925 and any violation below targets 1.2870 (200- day MA)/1.27800. Any break below 1.27800 confirms bullish continuation.

 

It is good to buy on dips around 1.2930 with SL around 1.2870 for the TP of 1.3055/1.3080.

 

 

 

 

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