FxWirePro: USD/CAD trades amid strong oil price, good to buy on dips

• USD/CAD hits 7- week high yesterday amid rise in crude oil prices. Donald Trump announced yesterday that US will withdraw from 2015 nuclear deal and once again will re impose sanctions on Iran. IUS pulling out of deal a blow to allies and it will also increase Middle East tensions. Loonie hits high of 1.29976 and shown a minor profit booking on account of rising crude oil prices .It is currently trading around 1.29380.
   
• WTI Crude oil prices has broken $71 for the first time since 2014 on account of re impose of economic sanctions on Iran by US. Iran is second largest producer of in OPEC. It hits high of $71.14 and is currently trading around $70.90.
   
• Technically near term resistance is around 1.3000 and any convincing break above targets 1.3040/1.3125. Major bullish continuation only above 1.3125.
   
• On the lower side, near term support is around 1.2920 and any break below will drag the pair down till 1.2880 (23.6% fibo)/1.2800/1.2775 (55- day EMA).

It is good buy on dips around 1.2925-30 with SL around 1.2880 for the TP of 1.3000/1.3045.