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FxWirePro: USD/CAD trades higher on slightly weak Canada Wholesale data, good to buy on dips

  • USD/CAD was trading higher and hits 6- week high on account of slightly weak Canadian economic data. The pair has broken major resistance 1.26600 and jumped till 1.26662.
     
  • Canadian Wholesale sales rose by 0.5% in line with forecast of 0.5% and market awaits BOC interest rates decision on Wed for further direction. Any dovish comment from BOC Governor will take the pair to next level till 1.27780. The policy divergence between BOC and US Fed will take the USD/CAD further high.
     
  • The crude oil prices are trading in narrow range between $52.34 and 50.95 for the past six days. It is facing major resistance at $52.40. Any break above $52.40 will take the oil to next level till $53/$53.75.
     
  • On the lower side, near term support is around 1.2580 any break below will drag the pair to next level till 1.2515 (55- day EMA)/1.2465/1.2430.

It is good to buy on dips around 1.2600 with SL around 1.2550 for the TP of 1.2700/1.2770.            

 

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