FxWirePro: USD/CAD trades higher on NAFTA uncertainty, good to buy on dips
USD/CAD is trading higher and is slightly above 1.3000 level. Major event for the day is FOMC meeting and markets expects fed to hike interest rates. The Canadian dollar was trading lower following G7 summit in Quebec. T…
USD/CAD is trading higher and is slightly above 1.3000 level. Major event for the day is FOMC meeting and markets expects fed to hike interest rates. The Canadian dollar was trading lower following G7 summit in Quebec. Trade war fears and death of NAFTA are the main issues dragging Canadian dollar. The pair hits intraday high of 1.30462 and is currently trading around 1.30228.
WTI Crude oil prices has shown a good recovery as Trump and Kim signed historic Singapore summit. The commodity jumped till $66.58 but upside is limited on account of US oil drilling activity highest level since Mar 2015 and increasing output from Russia. It is currently trading around $66.30.
Technically near term resistance is around 1.3067 and any convincing break above targets 1.3125.Major bullish continuation only above 1.3125. The minor resistance is around 1.3000/1.3035.
On the lower side, near term support is around 1.2880 and any convincing break below will drag the pair down till 1.2850/1.2800.
It is good to buy on dips around 1.2965-70 with SL around 1.2920 for the TP of 1.3125.
