FxWirePro: USD/CAD trade idea

• USD/CAD trades in narrow range between 1.36393 and 1.37529 for the past five trading day’s .The pair formed a double bottom almost at 1.3640 and any minor weakness can be seen only below that level.
   
• WTI Crude oil recovered sharply after hitting the low of $43.73 on expectations of more production cuts and more than expected fall in crude oil inventories. EIA reported crude inventories fell 5.25 MMbbl to 522 million last week, highest since Jan 2017.
   
• USD/CAD formed a temporary top around 1.37935 on Friday and started to decline from that level. The pair is facing strong support at 1.3640 almost a double bottom. Any break below will drag the pair down till 1.3580 (21 EMA)/1.35295 (Apr 27th 2017). The major support is around 1.3530 (low made on Apr 27th 2017) and any break confirms that jump from 1.24607 comes to an end at 1.37935. Any break below will drag the pair down till 1.34100/1.32800 (38.2% retracement of 1.2460 and 1.37935).
   
• The near term resistance is around 1.3750 and any break above will take the pair till 1.3800. Any close above 1.3838 (61.8% fibo) confirms bullish continuation.
  
  It is good to buy on dips around 1.3700 with SL around 1.3640 for the TP of 1.3800/1.38338.

Resistance
                   

R1-1.3755
                                                            

R2 -1.3800
 

R3- 1.38338
 

Support   
 

S1-1.3640
 

S2-1.3530

S3- 1.3410