- USD/CAD continuing its bullishness and jumped almost more than 100 pips after Powell first testimony yesterday. The pair continuing its second day of bullishness and broken major resistance at 1.27606. The NAFTA negotiations round 7 underway which has started on Sunday. Negotiators are confident that lesser hurdles will gradually be cleared. The pair hits high of 1.27787 and is currently trading around 1.27682.
- Powell stated that fed will upgrade US economic outlook next meeting and affirms that inflation will rise and reach our target of 2% this year.
- Oil prices has declined $2 from Friday high of $64.21 due to reports of rise in US crude inventory. American petroleum institute shows that crude inventories rose by 933000 barrels in the week to Feb 23rd to 421.2 million barrels. Crude oil prices hits low of $62.56 and is currently trading around $62.90.
- On the higher side, major resistance is around 1.2800 and any break above will take the pair till 1.2830 (233- day MA)/1.2865.
- The near term support is around 1.26970 (5- day MA) and any break below will take the pair till 1.2650 (38.2% fibo)/1.2620 (10- day MA)/1.2600. Short term bearish continuation only below 1.2450.
It is good to buy on dips around 1.2745-50 with SL around 1.26970 for the TP of 1.2800/1.2825.
Resistance
R1-1.2800
R2 – 1.2835
R3-1.2900
Support
S1-1.26970
S2-1.26600
S3- 1.2600
