FxWirePro: USD/CAD trades higher on hawkish Fed, good to buy on rallies

• USD/CAD is trading in narrow range between 1.30670 and 1.2850 for past one week.  US fed hiked interest rates and was more hawkish than expected. The dot plot shows more than 3 rate hikes this year. Major event for the day is FOMC meeting and markets expects fed to hike interest rates. The Canadian dollar was trading highly volatile this week as US and Canada trade war intensifies. Trade war fears and death of NAFTA are the main issues dragging Canadian dollar. The pair hits intraday high of 1.30516 yesterday and is currently trading around 1.30052.
   
• WTI Crude oil prices has shown a good recovery on better than expected US inventory data. US inventory fell by 4.143 million barrels for the week ended June 8th well above expectations of 1.440 million. The commodity jumped till $67.14 but upside is limited on account of US oil drilling activity highest level since Mar 2015 and increasing output from Russia. It is currently trading around $67.11.
   
• Technically near term resistance is around 1.3067 and any convincing break above targets 1.3125.Major bullish continuation only above 1.3125. The minor resistance is around 1.3000/1.3035.
   
• On the lower side, near term support is around 1.2880 and any convincing break below will drag the pair down till 1.2850/1.2800.

It is good to buy on dips around 1.2965-70 with SL around 1.2920 for the TP of 1.3125.