FxWirePro: USD/CAD upside capped by 50% fibo, good to buy on dips

• Major trend line resistance- 1.2928 (50% retracement of 1.3795 and 1.20613).
   
• USD/CAD is trading higher consecutively for the past four days on account of weak crude oil price and rising US 10 –year bond yields. The pair has broken major resistance 1.2845 (200- day EMA) and jumped till 1.29094. It is currently trading around 1.28690.
   
• OPEC yesterday agreed to extend output cuts by 9Mto the end of 2018 as expected and ministers added a provision to review the production cut in June meeting.
   
• Crude oil prices has recovered after hitting low of $56.74 on Nov 29th 2017. Oil prices recovered slightly after OPEC agrees for production cut. The commodity has taken support near 20 –day MA and any further weakness can be seen only below that level. It is currently trading around $57.85.
   
• The pair has formed a minor bottom at 1.26675 and shown a jump till 1.29093. The near term major support is around 1.2845 (200- day EMA) and any break below will drag the pair to next level till 1.2800/1.2745. Short term weakness can be seen only below 1.2660. It should break below 1.24300 for overall bearishness.
   
• On the higher side, near term resistance is around 1.2928 (50% retracement of 1.3795 and 1.20613) and any violation above will take the pair to next level till 1.300. Major bullishness can be seen only above 1.3000.

It is good to buy on dips around 1.2850 with SL around 1.27980 for the TP of 1.2928/1.3000.