FxWirePro:USD/CAD Trade Idea

USDCAD has shown a good recovery after more than 100 pips decline.Loonie was trading higher nearly 2-month and jumped more than 500 pips from low of 1.28125 made on Oct 1st 2018. The jump was mainly due to the huge sell-off in crude oil price. Markets eye Canada GDP data and Trump and XI meeting for further direction. Loonie recovered till 1.33123 and is currently trading around 1.33055.

Crude oil price has shown a minor jump of more than 5% from low of $57.47. the jump was mainly due to short covering. Brent crude oil is currently trading around $59.88.

On the lower side, near term major support is around 1.3260 and any break below will drag the pair till 1.3230 (10 day MA)/1.3180.

The near term resistance is around 1.3320 and any convincing break above targets 1.33860 (Jun 27th 2018 high).Any break above 1.3380 confirms bullish continuation.

It is good to buy on dips around 1.3250-55 with SL around 1.3200 for the TP of 1.3380.

Resistance

R1- 1.3320

R2 - 1.3360

R3- 1.3385

Support               

S1- 1.3230

S2- 1.3180

S3- 1.3125