FxWirePro: USD/CAD recovers as NAFTA uncertainty lingers, good to buy on dips
USD/CAD has shown a good jump of more than 150 pips from the low of 1.27496 made yesterday as NAFTA uncertainty offsets higher oil price and better than expected Canada economic data. The pair hits intraday high of 1.289…
USD/CAD has shown a good jump of more than 150 pips from the low of 1.27496 made yesterday as NAFTA uncertainty offsets higher oil price and better than expected Canada economic data. The pair hits intraday high of 1.28928 and is currently trading around 1.28879.
Mexico said that NAFTA negotiations could drag on till 2019 and US Treasury Secretary Steven Mnuchin on Monday said major issues remained in talks. Canada exports almost 75% to the US and economy would get hurt if the deal not reached.
WTI Crude oil prices has shown a minor profit booking after high of $73 level. It hits 3 ½ year high on concerns that Iranian exports might fall due to US sanctions. It is currently trading around 71.80.
Technically near term resistance is around 1.2925 and any convincing break above targets 1.2965/1.3000. Major bullish continuation only above 1.3125.
On the lower side, near term support is around 1.2800 and any convincing break below will drag the pair down till 1.2710(61.8% fibo )/1.2660/1.2600.
It is good buy on dips around 1.2800 with SL around 1.2745 for the TP of 1.2920/1.3000.
