USDCAD hits low of 1.31270 on Friday after better than expected Canada manufacturing sales. Canadian manufacturing sales came at 0.2% compared to forecast of 0.1% . The gains in the sales were led by transport equipment. Canadian dollar was trading weak and hits 4 -month low on account of huge plunge in crude oil prices. The pair hits high of 1.32636 and shown a decline of over 100 pips from that level. It is currently trading around 1.31680.
Brent crude has shown huge decline of more than 25% from the high on account of increase in supply from Saudi and also continuous increase in US crude oil inventory. It hits low of $64.69 and is currently trading around $66.91.
The near term resistance is around 1.3200 and any break above targets 1.32661 (78.6% fib)/1.3300.
On the lower side , major support is around 1.3135 (20- day MA) and any close below targets 1.3070/1.3050 (89- day EMA).
It is good to buy on dips around 1.3135 with SL around 1.3070 for the TP of 1.3260.
