FxWirePro: USD/CAD trades high on US threat to leave NAFTA, good to buy on dips

• CAD shown minor weakness in the week after hitting low of 1.2355 low made on Jan 5th 2018. USD/CAD jumped almost 223 pips on rumors that Trump will kill NAFTA trade agreement. The pair hits high of 1.25899 and is currently trading around 1.25358.
   
• The next round of NAFTA negotiations will happen in Jan 23-28 in Montreal and till that market will be choppy. Canada is preparing for new talk’s related to auto in next round of negotiations.
   
• Crude oil price hits 3 year high at $64.75 on account of series of geo political tensions and OPEC production cut. The commodity declined almost $1.40 from the high due to overbought situations. The increase in shale gas production will prevent the further rise. It is currently trading around $63.35.
   
• Technically, major short term support is around 1.2500 and any break below will drag the pair till 1.2435/1.23550. Overall bullish invalidation only below 1.2060.
   
• On the higher side, near term major resistance is around 1.26000  and any break above will take the pair to next level till 1.2638 (daily Kijun-Sen)/1.27070 (61.8% retracement). Short term bearish invalidation only above 1.2925.

It is good to buy on dips around 1.2500 with SL around 1.2435 for the TP of 1.2640/1.27070.