FxWirePro: USD/CAD trades higher on NAFTA talks, good to buy on dips

• USD/CAD recovered sharply after showing minor decline till 1.2610 level. The pair continuing its second day of bullishness on NAFTA talks. The talks go into their seventh round which began Sunday in Mexico City. The pair formed temporary top around 1.27606 and started to decline from that level.  It is currently trading around 1.27094.
   
• The economic data to be released are US durable goods order and CB consumer confidence.
   
•  Oil prices jumped almost $2 from Friday low of $62.36 due to reports of slowdown in in exports from Libya’s Mellitah oil terminal and unexpected drop in US crude inventory. Crude oil prices hits high of $63.75 and is currently trading around $62.60.
   
• On the higher side, major resistance is around 1.2760 and any break above will take the pair till 1.280/1.2830 (233- day MA).
   
• The near term support is around 1.2675 and any break below will take the pair till 1.2630 (5- day MA)/1.2578 (10- day MA)/1.2520. Short term bearish continuation only below 1.2450.

It is good to buy on dips around 1.2700 with SL around 1.2655 for the TP of 1.2800/1.2825.