FxWirePro: USD/CAD downside capped by 7- day MA, market eyes BOC

• USD/CAD declined more than 100 pips yesterday on account of profit booking. The pair hits fresh 2018 high at 1.300. The pair down almost 0.80% this month following 4.85% in previous month. Trump’s tariff card in NAFTA negotiations is main reason for major dip in Canadian dollar on Friday. The major importers of Steel to US are Canada (16%) and Mexico (9%). It is currently trading around 1.29291.
   
• Market eyes BOC monetary policy meeting for further direction. Any dovish comment from BOC will take the pair well above 1.3000.
   
•  Oil prices has shown a almost $1 decline after API reports more build up. API reported a build up of 5.66 million barrels compared to forecast of 2.723 million barrels. It is currently trading around $61.92.      
       
• On the higher side, major resistance is around 1.3000 and any break above will take the pair till 1.3000/1.3070.
   
• The near term support is around 1.2835 (7- day MA) and any break below will take the pair till 1.2800/1.2700.Short term bearish continuation only below 1.2800.

It is good to buy on dips around 1.2915-20 with SL around 1.2860 for the TP of 1.3000/1.3070.