FxWirePro: USD/CAD Trade Idea

USD/CAD has lost more than 150 pips from the high of 1.33599 on account of easing trade war and rising crude oil Prices. US and China trade talks was positive and no trade tariff for next three months. The tariff may increase only if no agreement reached after three months. Canada’s economic growth slowed down to 2% in the third quarter compared to 2.9% in previous quarter. Loonie declined till 1.31755 and currently trading around 1.31763.

Crude oil price has shown a good recovery of more than 9% from low of $57.53 on account of US and China trade tariff suspension. Brent crude oil is currently trading around $62.02.

On the lower side, near term major support is around 1.3130 (55- day EMA) and any break below will drag the pair till 1.3090/1.3000.

The near term resistance is around 1.3260 and any convincing break above targets 1.3320/1.3385 (Jun 27th 2018 high).Any break above 1.3380 confirms bullish continuation.

It is good to sell on rallies around 1.3215-20 with SL around 1.3260 for the TP of 1.3000.

Resistance

R1- 1.3215

R2 - 1.3260

R3- 1.3320

Support               

S1- 1.3130

S2- 1.3090

S3- 1.3000