Loonie has halted its 6 days of losing streak and shown a minor recovery after dovish Bank of Canada monetary policy. Bank of Canada has kept its interest rates unchanged at 1.75% and downgraded economic outlook on falling oil price. Crude oil price has fallen more than 40% in the past three months on increase in supply and trade war between US and China. The pair hits low of 1.31800 and is currently trading around 1.32336.
Brent crude oil has formed a temporary bottom around $50.05 and jumped more than $10 in past two weeks on Saudi production cuts and easing trade war between US and China.
The near term resistance is around 1.3300 (23.6% fib) and any violation above targets 1.3320/1.3370/1.3425.
On the lower side, near term support is around 1.3165 (100-day MA) and any break below targets 1.3070 (200- day MA)/1.3050.
It is good to buy on dips around 1.3220 with SL around 1.3160 for the TP of 1.3400.
