• USD/CAD has shown a good recovery after hitting low of 1.3260on account of escalating US and other economies trade war. Canada exports many commodities and any trade war would affect its economy as a whole.The Canadian economic data released previous week was slightly weaker than expected . Canadian retail sales data has declined by 1.2% in Apr, the largest drop in 2 years and inflation came at 2.2% for the month of May well below forecast of 2.6%. The weak economic data will reduce the chance of rate hike by BOC in the near term. Trade war fears and delay of NAFTA are the main issues dragging Canadian dollar. Markets eye BOC governor Poloz speech and any dovish comment from Bank of Canada will take the pair till 1.3500. It is currently trading around 1.3280.
   
• WTI Crude oil prices has shown a huge recovery from the low of $64.49 after OPEC meeting . OPEC has announced that ouput is set to increase by 1MMbbls/d. It hits high of $71.45 and is currently trading around $71.38.
   
• Technically near term resistance is around 1.3380 and any convincing break above targets 1.3400/1.3500.
   
• On the lower side, near term support is around 1.3250 and any convincing break below will drag the pair down till 1.3199 (7- day MA)/1.3130.
  
  It is good to buy on dips around 1.3255-60 with SL around 1.31990 for the TP of 1.3350/1.3400.