FxWirePro: USD/CAD trades higher on weak crude oil price, good to buy on dips

Lonnie has shown a minor jump after hitting low of 1.27835 yesterday on better than expected Canada manufacturing data. The pair hits low of 1.27138 and recovered slightly from that level. The pair jumped till 1.27670 at the time of writing. It is currently trading around 1.27661.

Canadian manufacturing sales rose unexpectedly in Sep. It rose 0.5% in total sales compared to 0.3% decline.

Crude oil prices declined sharply after hitting high of $57.89 on account higher than inventory buildup.  EIA reported shocking build of 1.9 million barrels compared to forecast of decline of 2.1 million barrels. The near term support is around $55 and any break below will drag the commodity down till $54/$53.

On the lower side, minor support is around 1.2690 and any break below will drag the pair down till 1.2600/1.2540/1.2500.

The major resistance is around 1.2820 (Nov 7th 2017 high) and any break above will take the pair to next level till 1.2860/1.2900. It should break above 1.2928 for further bullishness.

It is good to buy on dips around 1.2735-1.2740 with SL around 1.2690 for the TP of 1.28195