FxWirePro: USD/CAD trade higher on weaker Canadian data, good to buy on dips
USD/CAD is trading higher after pair hitting low of 1.2250. Canadian dollar declined slightly after BOC deputy Governor Timothy Lane signals gradualist approach to more rate hikes. Canada CPI Y-O-Y rose to 1.4% last mont…
USD/CAD is trading higher after pair hitting low of 1.2250. Canadian dollar declined slightly after BOC deputy Governor Timothy Lane signals gradualist approach to more rate hikes.
Canada CPI Y-O-Y rose to 1.4% last month from the forecast of 1.5%. Retail sales came at 0.4% compared to forecast of 0.2% on cars, food. But decline in inflation has dragged the Canadian dollar as BOC will not raise rates rapidly.
Crude oil is trading higher and closed above $50 after OPEC defers oil output cut decision. The oil is facing minor resistance at $51.10 and any break above will take the commodity to next level till $51.97.
On the higher side, near term resistance is around 1.23400 (38.2% retracement of 1.27782 and 1.20613) and any break above will take the pair till 1.24285 (50% fibo). The pair should break above 1.2425 for minor bearish invalidation.
The near term support is around 1.2250 and any break below will drag the pair down till 1.2165/1.20600.
It is good to buy on dips around 1.2300 with SL around 1.2250 for the TP of 1.2425/1.2500.
