FxWirePro: USD/CAD trade Idea

• USD/CAD hits fresh 2018 high at 1.33860 yesterday and shown a minor decline after BOC Poloz speech. Bank of Canada governor Poloz mentioned in speech that effects of US steel and aluminium tariffs and tigher mortage rules will “figure prominently” in BOC next policy decesion in Jul. But rate hike in Jul is still on the cards. The trade war and NAFTA uncertainty is putting more pressure on Canadian dollar. The slight jump in crude oil prices also supporting Canadian dollar prices. It is currently trading around 1.32915.
   
• WTI Crude oil prices has shown a huge jumnpofmore than $2 yesterday on beeter then expected crude inventory data. US oil stock pilles fell by 9.9 million barrels while gasoline supplies were up by 1.2 million barrels. It hits high of $73.09 and is currently trading around $72.80.
   
• Technically near term resistance is around 1.3380 and any convincing break above targets 1.3400/1.3500.
   
• On the lower side, near term support is around 1.3250 and any convincing break below will drag the pair down till 1.3199 (7- day MA)/1.3130.
  
  It is good to buy on dips around 1.3255-60 with SL around 1.31990 for the TP of 1.3350/1.3400.

Resistance

R1- 1.3380
 

R2 –1.3450
 

R3- 1.3500

Support               
 

S1- 1.3250
 

S2-1.3200
 

S3-1.3130