FxWirePro: USD/CAD Trade Idea

USD/CAD was trading higher and hits fresh 18- month high after Fed hiked interest rates by 25 basis point and dot plot projection for 2019 fell from three hikes to two.Canadian annual CPI data came at 1.7% in Nov compared to forecast of 1.8% and 2.4% rise in Oct. It hits  high of 1.35066 and currently trading around 1.34615.

WTI crude oil price is trading steady after a huge sell-off of more than 9% on Tuesday. US EIA report shows that US commercial crude decreased by 500,000 barrels last week compared to forecast of -2.7 M barrels.It is currently trading around $46.26.

On the lower side, near term major support is around 1.3393 (10- day MA) and any break below will drag the pair till 1.3327/1.32500.

The pair is facing major resistance around 1.3500 and any break above targets 1.3585/1.3600 is possible.

It is good to buy on dips around 1.3430-35 with SL around 1.3380 for the TP of 1.3600.

Resistance

R1- 1.3500

R2 - 1.3580

R3- 1.3625

Support               

S1- 1.3393

S2- 1.3320

S3- 1.3250