- USD/CAD recovered slightly from the low of 1.25275 made on Tuesday. Loonie jumped more than 100 pips after BOC monetary policy statement. It hits high of 1.26594 and is currently trading around 1.25950.
- BOC has expected to keep its interest rates unchanged at 1.25%. The central bank remains cautious about future rate hikes. The bank has raised interest rates three times from last June. A quarter point hike is expected in the near term mostly in May or June. Overall Canadian economy near full-capacity and unemployment lowest level since 1970s but uncertainty over North American Free Trade Agreement are factors weighing on economy.
- WTI Crude oil prices jumped more than 10% in this week and hits high of $67.73 on account of declining crude oil inventories. It is currently trading around $69.19.
- Technically near term resistance is around 1.2660 and any break above targets 1.2700/1.2725/1.2800. Overall bullish continuation only above 1.3125.
- On the lower side, near term support is around 1.2550 and any break below will drag the pair down till 1.252/1.2500/1.24500.
It is good to buy on dips around 1.2585-90 with SL around 1.2545 for the TP of 1.2660/1.2700.
Resistance
R1-1.2660
R2 –1.2700
R3- 1.2745
Support
S1-1.2580
S2-1.2520
S3- 1.2480
