FxWirePro: USD/CAD hits 5-week high on broad based US dollar buying, jump till 1.3400 possible

USD/CAD is trading higher for 5th consecutive day and jumped more than 200 pips after forming a minor bottom around 1.31181. The jump was due to weak Canadian economic data and sudden more than $3 decline in crude oil price. Markets eye US ISM non manufacturing index data which is to be released for further direction. The pair hits high of 1.33500 and is currently trading around 1.33350.

Crude oil declined sharply from high of $57.85 and hits low of $55.55 after China cuts economy outlook for 2019. US-China trade hopes and decline in US rig count data to support crude oil price at lower level. It is currently trading around $56.48.

On the higher side, near term resistance is around 1.3340 and any convincing break above will take the pair to next level till 1.3380/1.34450 (61.8% fib).

The near term support is around 1.3260 and any break below will drag the pair till 1.3230/1.3205 (61.8% fib)/1.3158 (200- day MA). Any violation below 1.3110 confirms further weakness.

It is good to buy on dips around 1.3300 with SL around 1.3250 for the TP of 1.3400/1.34450.