FxWirePro: USD/CAD Trade Idea

USDCAD has recovered sharply more than 100 pips yesterday and broken major resistance 1.33179 high made on Nov 20th 2018. The pair was trading higher for past four trading session on account of lower crude oil prices and US -China trade tension. The pair has formed minor double bottom around 1.31800 and any minor weakness only below that level. It is currently trading around 1.33238. 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 1.3260 and any break below will drag the pair till 1.3230 (10 day MA)/1.3180.

The near term resistance is around 1.3320 and any convincing break above targets 1.33860 (Jun 27th 2018 high).Any break above 1.3380 confirms bullish continuation.

It is good to buy on dips around 1.3300 with SL around 1.3260 for the TP of 1.3385.

Resistance

R1- 1.3335

R2 - 1.3380

R3- 1.4000

Support               

S1- 1.3260

S2- 1.3230

S3- 1.3180