FxWirePro: USD/CAD trades higher on rising trade tension, good to buy on dips

USD/CAD has gained more than 100 pips yesterday from the low of 1.30895 as deadline for the North American Trade Agreement (NAFTA) ended on Friday .Trump’s tweet on previous week on NAFTA also supported Canadian dollar decline. Trump tweeted "If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere w/ these negotiations, or I will simply terminate NAFTA entirely & we will be far better off..." and then added "....Remember, NAFTA was one of the WORST Trade Deals ever made. The re-negotiation of US and Canada trade deal is happening this week. It hits high of 1.32077 and is currently trading around 1.31819.

WTI crude has shown a good jump till $71.37 as US inventory is expected to be lower and sanctions on Iran. But slight weakening of tropical storm hitting the U.S gulf coast has dragged the crude oil prices almost by $2. It is currently around $69.32. Any break below $69 confirms bearish continuation.d convincingly break above $70.50 for further bullishness.

On the higher side, near term resistance is around 1.3205 and any break above targets 1.3275/1.3300.

The near term support is around 1.3130 and any break below targets 1.3090/1.3060/1.3000.

It is good to buy on dips around 1.3100-025 with SL around 1.3 for the TP of 1.3175/1.324