FxWirePro: USDCAD forms Bullish Shark Pattern, good to buy on dips

• Harmonic pattern formed – Bearish Shark pattern
   
• Potential Reversal Zone (PRZ) – 1.26500
   
• USD/CAD has declined sharply after dovish FOMC minutes meeting. The pair declined till 1.26728 after Fed minutes showed concerns over weak inflation .The rate hike in Dec is confirmed but there are growing doubts over three more hikes in 2018. US dollar index broken major support at 93.40 (50- day MA) and dipped till 93.10 at the time of writing.
   
• Crude oil prices hit 2-1/2 high
  on keystone pipe line shutdown. Oil prices jumped 2% on Wed till $58.12. It is currently trading around $57.86.
   
• The pair has formed potential Bearish Shark Pattern and any major weakness can be seen only below 1.26500. Any break below will drag the pair to next level till 1.2600/1.2500. It should break below 1.24300 for overall bearishness.
   
• On the higher side, near term resistance is around 1.2705 and any violation above will take the pair to next level till 1.2755/1.2800. Short term bullishness can be seen only above 1.2835.

It is good to buy on dips around 1.2655-1.2660 with SL around 1.2600 for the TP of 1.2745/1.2800.