FxWirePro: USD/CAD Long Term Outlook

• USD/CAD recovered sharply after forming temporary bottom around 1.2060 on Sep 8th 2017. The pair jumped almost 840 pips from the bottom and is expected to trade higher in the 2018 on account of weak economy. It is currently trading around 1.28641.
   
• Canadian growth rate is expected to slow to 2.1% and 1.9% in 2018 and 2019 respectively, according to Organization for Economic Cooperation and Development (OECD). The reason for growth to come down was due to slower wage growth and home price. Canada home price are expected to cool in 2018 due to rising interest rates and tighter mortgage policy.
   
• US tax bill passed by Senate will have positive impact on U.S economy. Analysts expects earnings to be boosted by average 10% and higher benefits up to 30%.
   
• Technically, major short term support is around 1.2600 and any break below will drag the pair till 1.24300. Short term weakness only below 1.2430. Overall bullish invalidation only below 1.2060.
   
• On the higher side, near term major resistance is around 1.2971 (233- day MA) and any daily close above will take the pair to next level till 1.3130 (61.8% fibo)/1.3380.

It is good to buy on dips around 1.2660 with SL around 1.2430 for the TP of 1.3130/1.3380.