FxWirePro: USD/CAD trades higher on trade war worries, good to buy on dips

• USDCAD has shown a nice recovery from low of 1.29205 yesterday. The Canadian dollar was trading lower following G7 summit in Quebec. Trade war fears and death of NAFTA are the main issues dragging Canadian dollar. The FOMC meeting is on Wednesday and markets expect that fed will raise interest rates by 0.25%. Any hawkish comments from Fed will drag the Canadian dollar further down.The pair hits intraday high of 1.30279 and is currently trading around 1.30041.
   
• WTI Crude oil prices has shown a good recovery as Trump and Kim signed historic Singapore summit. The commodity jumped till $66.58 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 $66.30.
   
• 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.