FxWirePro: USD/CAD recovers slightly on weak crude oil prices, good to buy on dips

USD/CAD was trading lower on Friday despite overall strong US dollar. The Canadian economic data released on that day was supporting CAD. Statistics Canada said that annual inflation has gone up to 2.4% form 2.2% in Sep and it was also beats economist forecast of 2.2%.It is well above Bank of Canada target of 2%.Canada’s retail sales came at 0.2% m/m compared to forecast of 0.1%. But declining crude oil prices putting pressure on Canadian dollar. The pair hits low of 1.31822 and is currently trading around 1.31919.

Brent crude oil has declined sharply more than 8% and hits low of $58.42 on account of increasing supply and demand is expected to decline in the coming months.

On the higher side, near term resistance is around 1.3265 and any break above targets 1.3300/1.3320. The pair should break above 1.3385 for further direction.

The near term support is around 1.3173 (20- day MA) and any violation below targets 1.3127/1.3070 (89- day EMA).

It is good to buy on dips around 1.31700 with SL around 1.3125 for the TP of 1.3300.