FxWirePro:USD/CAD hits 6-month high on dovish BOC ,good to buy on dips

USD/CAD shown a massive recovery of more than 150 pips from low of 1.32527 in past two trading session on dovish Bank of Canada policy. BOC has kept rate unchanged at 1.75% and said that economy is losing momentum and decline in crude oil prices affecting energy sector. Alberta’s decision to cut oil production will have impact on Canadian economy. According to Bank of Montreal economists predicted on Monday that GDP would expand by 1.8% instead of 2%. The pair jumped till 1.34387 and currently trading around 1.34367.

Brent crude oil price has lost more than 4% for the day and markets awaits OPEC meeting to be happened today for further weakness. It hits low of $59.08 and is currently trading around $59.15.

On the lower side, near term major support is around 1.3380 and any break below will drag the pair till 1.3300/1.3270 (5- day MA).

The pair has broken major resistance 1.3380 and holding well above that level.This confirms major trend reversal and a jump till 1.3500 is possible.

It is good to buy on dips around 1.3380 with SL around 1.33200 for the TP of 1.3500.