- USD/CAD is trading higher yesterday after sharp pull back in dollar against all majors. It hits 3- month high at 1.31536. US fed hiked interest rates and was more hawkish than expected. The dot plot shows more than 3 rate hikes this year. The Canadian dollar was trading weak this week as US and Canada trade war intensifies. Trade war fears and death of NAFTA are the main issues dragging Canadian dollar. The pair hits intraday high of 1.30516 yesterday and is currently trading around 1.3150.
- WTI Crude oil prices has shown a good recovery on better than expected US inventory data. US inventory fell by 4.143 million barrels for the week ended June 8th well above expectations of 1.440 million. The commodity jumped till $67.14 but upside is limited on account of US oil drilling activity highest level since Mar 2015 and increasing output from Russia. It is currently trading around $66.72.
- Technically near term resistance is around 1.3160 and any convincing break above targets 1.325/1.3300.
- On the lower side, near term support is around 1.3000 and any convincing break below will drag the pair down till 1.2920/1.2860.
It is good to buy on dips around 1.3050 with SL around 1.3000 for the TP of 1.3240/1.3300.
