FxWirePro: USD/CAD recovers more than 50 pips from low on weak crude oil price, good to buy on dips

USD/CAD has lost more than 130pips after hitting high of 1.33179 on Nov 20th 2018. The slight jump in Canadian dollar was due to broad based USD selling and minor recovery in crude oil prices. The pair hits low of 1.31820 and shown a 40 pips recovery. It is currently trading around 1.32232 (0.29% higher).

Brent crude is once again showing a decline after a minor jump. The commodity has broken the previous support at $61.75 and hits lowest level since Dec 2017. The spread between US oil and International oil prices has increased by almost $8 on increasing supply from U.S.

On the lower side, near term support is around 1.3165 (20 day MA) and any break below targets 1.3125/1.3069.

The near term resistance is around 1.3265 and any violation above targets 1.3300/1.3380. Any good jump only above 1.3385 level.

It is good to buy on dips around 1.3200 with SL around 1.3160 for the TP of 1.3315.