- Loonie is showing a minor weakness after a 200 pips jump from the low on account of US trade war with other countries. BOC monetary policy meeting happened in previous week confirms that central bank is ready to raise rates in the coming months. But the trade war between US and other countries is putting much pressure on Canadian dollar. US has imposed import tariff on steel and aluminum product on EU, Mexico and Canada. US commerce secretary Wilbur Ross said EU companies would face 25% duty on steel and 10% duty on aluminum from midnight on Thursday. The pair hits high of 1.29904 and started to decline slightly from that level. It is currently trading around 1.29250.
- WTI Crude oil prices has shown a major decline of more than $4 on account of rising US crude production and rising OPEC supplies. In March US crude production has jumped to 215000 bpd to 10.47 million bpd , new monthly record. It is currently trading around $65.39.
- Technically near term resistance is around 1.3000 and any convincing break above targets 1.3050/1.3080.Major bullish continuation only above 1.3125.
- On the lower side, near term support is around 1.2800 and any convincing break below will drag the pair down till 1.2740/1.2700.
It is good to buy on dips around 1.2920 with SL around 1.2860 for the TP of 1.300/1.3045..


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