FxWirePro: USD/CAD trades higher on broad-based US dollar buying, good to buy on dips

USD/CAD has once again recovered after showing a minor decline yesterday. US jobless claims declined sharply to 206000 compared to forecast of 226000 and US CPI came flat compared to previous month of 0.3% and annualized CPI came at 2.2% from 2.5%. The only factor which was supporting Canadian dollar was slight easing of trade tensions between US and China .The slightly dovish BOC and weak oi prices are putting pressure on C$. The pair hits intraday high of 1.34014 and currently trading around 1.33822.

Brent crude oil price has jumped nearly $2 trading steady after hitting low of $57.53. US EIA crude oil inventory came at -1.2 M compared to forecast of -3.0 M and previous week is at -7.3 million.It has jumped till $63.67 and is currently trading around $59.94.

On the lower side, near term major support is around 1.3320 and any break below will drag the pair till 1.3250/1.3160.

The pair is facing major resistance around 1.3450 and any break above targets 1.3500/1.3585 is possible.

It is good to buy on dips around 1.3300 with SL around 1.3250 for the TP of 1.3500.