FxWirePro: USD/CAD hits 3- month high on dovish BOC, good to buy on dips

• Canadian Dollar tumbled sharply yesterday after dovish Bank of Canada. Loonie has broken 1.28576 high made yesterday and jumped till 1.28877 and is currently trading around 1.2867.
   
• US Dollar Index was trading higher against all majors yesterday after Dovish ECB taper. The Central bank tapers Asset purchase program (AAP) to 30 billion euros slightly dovish than expected. The central bank puts a gentle dovish twist on assets purchase. It has reduced to half asset purchase and extended its duration.  
   
• Bank of Canada has kept its interest rates unchanged as expected and was slightly dovish in this month compared to previous month on account of declining inflation. The policy divergence between Fed and BOC was dragging the price of Canadian dollar further down.
   
• The crude oil prices has jumped sharply till $52.83 on hopes of continuing production cut further. The oil trades higher as Saudi’s Prince backing the extension of OPEC- led output cuts. It is facing major resistance at $52.83. Any break above $52.83 will take the oil to next level till $53/$53.75.
   
• The close above 1.27780 confirms major reversal, a jump till 1.3000 likely.
   
• On the lower side, near term support is around 1.2770 (resistance turned into support) and any break below will drag the pair to next level till1.2660/1.2640.        

It is good to buy on dips around 1.2835-1.2840 with SL around 1.2770 for the TP of 1.300.