FxWirePro: USD/CAD trade idea

As per our analysis USDCAD has shown a good recovery of more than 200 pips from low of 1.27800. The pair was trading slightly higher on broad based US dollar and weak crude oil prices.

US 10 year bond yield hits multiyear high at 3.24% after slightly better than expected US unemployment. This confirms that Fed will continue to hike rates in the coming months.  

Crude oil has declined more than $3 from high of $76.88 made on Oct 3rd 2018 as US to consider waivers on sanctions. It has broken minor support of $73.74 (10- day MA) and decline till $71.65 (20- day MA) is possible.

On the higher side near term resistance is around 1.3018 and any violation 1.3055 (100- day MA)/1.3080.

The near term support is around 1.2960 and any violation below targets 1.2925/1.2870 (200- day MA). Any break below 1.27800 confirms bullish continuation.

It is good to buy on dips around 1.2980 with SL around 1.2945 for the TP of 1.3055/1.3080.

R1- 1.3018
 

R2 - 1.3055

R3- 1.3080

Support               

S1- 1.2960

S2- 1.2920

S3- 1.2860