FxWirePro:USD/CAD Short-term Outlook

USD/CAD hits 19- month high at 1.36111 and consolidating in narrow range. The pair was trading higher amid better than expected Canada’s GDP data. Canadian GDP came at 0.3% for the month of Oct according to statistics Canada fastest pace in 5 month and jump was mainly due to strength in manufacturing , finance and insurance. Canadian dollar lags G-10 currencies due to oil price slump. It is currently trading around 1.36008.

Brent crude oil price is trading weak for 7th consecutive day and broken major support $50, lowest level since Jun 2017. The decline was mainly due to US government shutdown and US-China trade dispute. It is currently trading around $51.13.

On the lower side, near term major support is around 1.3530 (5- day MA) and any break below will drag the pair till 1.35027(23.6% fib)/1.3433 (10- day MA)/1.3380 (20- day MA).

The pair is facing major resistance around 1.3600 and any break above targets 1.3645/1.3700 is possible.

It is good to buy on dips around 1.3500 with SL around 1.3430 for the TP of 1.3700.