USD/CAD recovered more than 250 pips from the low of 1.26230 after dovish BOC monetary policy. The pair hits high of 1.28799 and is currently trading around 1.28397. The economic data released recently shows that Canadia…
USD/CAD recovered more than 250 pips from the low of 1.26230 after dovish BOC monetary policy. The pair hits high of 1.28799 and is currently trading around 1.28397.
The economic data released recently shows that Canadian economy is growing. The unemployment rate has declined from 6.3% to 5.9% for the month of Nov. The third quarter GDP came at slightly higher than expected at 1.7% compared to 1.6%. But Canadian dollar declined sharply after more dovish Bank of Canada monetary policy. The policy divergence between Fed and BOC is putting pressure of price of Loonie.
Technically, near term major resistance is around 1.2925 (50% retracement) and any break above will take the pair to next level till 1.2980 (233- day MA)/1.3000.
On the lower side, 1.2800 is acting as near term support and any break below will drag the pair to next level till 1.2760 (20- day MA)/1.2700/1.2660. It should break below 1.2600 for further weakness.
It is good to buy on dips around 1.2800 with SL around 1.2755 for the TP of 1.2925/1.2980.
