FxWirePro:USD/CAD hits 10-day high on broad based US dollar buying, good to buy on dips

USDCAD is consolidating in narrow range for past 10 trading days. The pair has formed minor bottom around 1.3180 and shown a minor recovery. Loonie was best performing currency in year 2018 and jumped more than 8% on account of easing crude oil price and dovish BOC. The pair has broken 1.3300 and jumped till 1.33428. It is currently trading around 1.33282.

Crude oi prices has lost nearly 2% for the day after more than 25% jump from bottom of $50.05. The decline was mainly due to global economy outlook and weak Chinese data. IMF has cut its global growth estimate by 3.5% from 3.7% for the year 2019.It is currently trading around $61.59.

On the higher side near term resistance is around 1.3400 (20- day MA) and any break above targets 1.3485/1.3500.

The near term support is around 1.3260 and any break below targets 1.3200/1.31800 (100-day MA). Any violation below 1.3180 confirms further bullishness.

It is good to buy on dips around 1.3300 with SL around 1.3250 for the TP of 1.3400.