FxWirePro: USDCAD trades slightly higher as NAFTA deadline looms, good to buy on dips

As per our analysis USDCAD has shown a minor jump of more than 80 pips from the low of 1.28843. It has formed almost a double bottom at 1.2880 and any further weakness only below that level. .

Canada is not making any concession and is expected to miss this week deadline to make deal with US. US is ready to sign new NAFTA with Mexico without Canada. US trade representative Robert Lighthizer said that Canada is not making a concession in areas where we think it is essential.

The pair is facing strong resistance around 1.2980 (55-4H EMA) and this confirms minor bullishness and a jump till 1.3000/1.30154 (Sep 19th high)/1.30480 (200- 4H MA).

Oil prices jumped sharply almost 2% till $72 on Iran sanctions and global oil supply. It is trading above $72 and a jump till 74 is likely. The sudden jump in oil price is supporting Canadian dollar.

The near term major support is around 1.2880 and any break below will drag the pair down till 1.2845/1.2800.

It is good to buy on dips around 1.2945-50 with SL around 1.2900 for the TP of 1.3015/1.30450.