- USD/CAD declined more than 100 pips yesterday on account of profit booking. The pair hits fresh 2018 high at 1.300. The pair down almost 0.80% this month following 4.85% in previous month. Trump’s tariff card in NAFTA negotiations is main reason for major dip in Canadian dollar on Friday. The major importers of Steel to US are Canada (16%) and Mexico (9%). It is currently trading around 1.29291.
- Market eyes BOC monetary policy meeting for further direction. Any dovish comment from BOC will take the pair well above 1.3000.
- Oil prices has shown a almost $1 decline after API reports more build up. API reported a build up of 5.66 million barrels compared to forecast of 2.723 million barrels. It is currently trading around $61.92.
- On the higher side, major resistance is around 1.3000 and any break above will take the pair till 1.3000/1.3070.
- The near term support is around 1.2835 (7- day MA) and any break below will take the pair till 1.2800/1.2700.Short term bearish continuation only below 1.2800.
It is good to buy on dips around 1.2915-20 with SL around 1.2860 for the TP of 1.3000/1.3070.
Resistance
R1-1.2960
R2 – 1.3000
R3-1.3070
Support
S1-1.2835
S2-1.2800
S3- 1.2725
