FxWirePro: USD/CAD hits 19-month high amid better Canadian GDP data, good to buy on dips

USD/CAD hits 19- month high amid better than expected Canada’s GDP data. Canadian GDP came at 0.3% for the month of Oct according to statistics Canada fastest pace in 5 months   and jump was mainly due to strength in manufacturing , finance and insurance. Canadian dollar lags G-10 currencies due to oil price slump. Fed hiked interest rates by 25 basis point and dot plot projection for 2019 fell from three hikes to two.It hits high of 1.36016 and currently trading around 1.35774.

WTI crude oil price is trading weak ahead of the Christmas holiday break .According to a report by General Electric Co’s Baker Hughes ,the number of active US rigs for drilling oil rose by 10 in the week ended Dec 21 to 883.It is currently trading around $45.32.

On the lower side, near term major support is around 1.3493(23.6% fib) and any break below will drag the pair till 1.3449 (5- day MA)/1.3400/1.3327/1.32500.

The pair is facing major resistance around 1.3600 and any break above targets 1.3645/1.3700 is possible.

It is good to buy on dips around 1.3550 with SL around 1.3490 for the TP of 1.3645/1.3700.