FxWirePro: USD/CAD Trade Idea

• Major support – 1.2920
   
• USD/CAD is consolidating after hitting high of 1.29843 on Tuesday. The main reason for dip in Canadian dollar is hawkish tone by Bank of Canada governor Poloz in a speech at Queen’s university in Kingston. He mentioned that economy has expanded without triggering inflation. The pair shown a minor profit booking till 1.29212. It is currently trading around 1.29870.
   
• Oil price is trading slightly weak which is also supporting USD/CAD bullish trend. WTI crude oil price has declined almost $1.29 yesterday on account of weaker than expected US EIA inventory data. Crude inventories rose by 5 million barrels in the week of compared to forecast of 2 million barrels.
   
• On the higher side, major resistance is around 1.3000 and any break above will take the pair till 1.3062/1.3130.
   
• The near term support is around 1.2920 and any break below will take the pair till 1.2860/1.2800.Short term bearish continuation only below 1.2800.

It is good to buy above 1.3000 with SL around 1.2945 for the TP of 1.3140.

Resistance
 

R1-1.29800
 

R2 – 1.3000
 

R3-1.3140

Support               
 

S1-1.2920
 

S2-1.2860
 

S3- 1.2800