FxWirePro: USD/CAD Trade Idea

• USD/CAD hits 2 –month high after breaking 1.3000 at the time of writing from low of 1.27496 almost 300 pips on account of huge decline in oil prices. It is currently trading around 1.3040.
   
• US is planning to impose import tariff for foreign automobiles .Mexico and Canada are currently the biggest supplier of US car imports, worth a combined $89 billion annually. If tariff comes into effect they would feel a massive amount of pain.
   
• WTI Crude oil prices has shown a huge decline of more than $7 from the high of $72.65 after Saudi Arabia and Russia discussed easing supply curbs  and they may increase supplies. It hits low of $65.78 and is currently trading around $66.51.
   
• Technically near term resistance is around 1.3000 and any convincing break above targets 1.3080/1.3125.Major bullish continuation only above 1.3125.
   
• On the lower side, near term support is around 1.2945 and any convincing break below will drag the pair down till 1.28850 (23.6% fibo)/1.2850 (7- day MA)/1.2800. the minor support is around 1.28500.

It is good buy on dips around 1.2995-1.3000 with SL around 1.2955 for the TP of 1.3120.   

Resistance

R1- 1.3050
 

R2 –1.3080
 

R3- 1.3125

Support               
 

S1- 1.2960
 

S2-1.2920
 

S3-1.2880