USDCAD Trade Idea

USDCAD continues to trade higher for 3rd day after jumping more than 100 pips yesterday. The pair has formed minor bottom around 1.30685 and shown nearly 250 pips jump.DXY is rebounding strongly and jumped more than 100 pips in this week. The pair hits high of 1.33291 and is currently trading around 1.33135.

Crude oil prices has declined more than 3% after European Commission downgraded Euro Zone economy for 2019 and 2020. It hits low of $60.59 and shown a minor recovery of more than $1.3. Brent has jumped more than $13 from low of $50.29 on OPEC production cut and U.S sanctions on Venezuela. It is currently trading around $61.86.

On the higher side, near term resistance is around 1.3380 and any break above will take the pair to next level till 1.3435/1.3500.

The major support is at 1.3270 (55- day EMA) and any violation below will drag the pair down till 1.3240/1.3160/1.3070 (300- day EMA)/1.3000. the minor support is around 1.3160.

It is good to buy on dips around 1.3275-80 with SL around 1.3240 for the TP of 1.3380/1.3435.  

Resistance

R1- 1.3270

R2 -1.3300

R3- 1.3380

Support               

S1- 1.3165

S2- 1.3120

S3- 1.3068