FxWirePro:USD/CAD jumps more than 1pct yesterday after huge sell-off in crude oil price, good to buy on dips

USD/CAD has shown a good jump of more than 150 pips yesterday after huge 7% sell-off in crude oil prices.The pair hits high of 1.33179 and is currently trading around 1.32981.

Brent crude oil has shown a massive sell-off yesterday more than 7% on increasing supply and slowing global growth. US and China trade war might impact the global growth and demand for oil to get reduced. US production has been rising faster than expected and output in Libya is also rising despite warfare. The Brent crude oil hits 8-month low at $61.75 and is currently trading around $63.28.

On the higher side, near term resistance is around 1.3320 and any break above targets 1.3385 (Jun 27th 2018). Any break above 1.3385 confirms bullish continuation.

The near term support is around 1.3275 (23.6% fib) and any break below targets 1.3275 (23.6% fib) and any violation below targets 1.3216 (7- day MA)/1.3152 (20- day MA).

It is good to buy on dips around 1.3255-60 with SL around 1.3215 for the TP of 1.3380.