- USD/CAD recovered sharply after weaker than expected Canada factory orders. The pair jumped almost 170 pips and is currently trading around 1.28572.
- Canadian manufacturing sales has declined 0.4% compared to forecast of 0.8% increase. The reason for decline was due to weak sales in autos and other transportation.
- Crude oil has taken support near trend line and shown a minor jump from that level7 and has shown a minor jump from that level. The key pipeline Forties closure is supporting the oil prices which carries 40% of UK’S North Sea.
- Technically, near term support is around 1.2800 and any break below will drag the pair till 1.2745/1.2715 (55- day EMA). Short term weakness only below 1.26000.
- On the higher side, near term major resistance is around 1.2928 and any break above will take the pair to next level till 1.3000/1.3050.Bullish continuation can be seen only above 1.2925.
It is good to buy on dips around 1.2805 with SL around 1.2745 for the TP of 1.2928/1.3000
Resistance
R1- 1.2928
R2 -1.3000
R3-1.3050
Support
S1-1.2800
S2- 1.2745
S3-1.2710
