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FxWirePro: USD/CAD takes support at 1.3226, good to buy dips

The dollar hit an almost three-week low against a basket of major currencies on Monday ahead of this week's Federal Reserve meeting.

  • Brent crude oil fell on Monday as weaker-than-expected Chinese data weighed on markets, adding to concerns that declining global demand would exacerbate a surplus of crude
     
  • USD/CAD edged lower, but elicited support at 1.3226 (Asia low) during the European session, 1.3257 was the European am high
     
  • The pair currently trades at 1.3255, kijun line at 1.3153 continues to underpin spot which means the overall bias is still on the upside
     

Recommendation: Good to buy dips around 1.3200, SL: 1.3150, TP: 1.3260

Resistance Levels:

R1: 1.3257 (Daily High Sep 14)
R2: 1.3310 (Daily Highs Sep 7/8/11)
R3: 1.3325 (Daily High Sep 2)

Support Levels: 

S1: 1.3225 (Session Low Sep 14)
S2: 1.3216 (Daily Low Sep 11)
S3: 1.3214 (21-Day MA)  

 

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