FxWirePro: USD/CAD trades higher on weak Canadian data, good to buy on dips
USD/CAD was trading higher and hits 6- week high on account of weak Canadian economic data. The pair has broken major resistance 1.2600 and jumped till 1.26290. Canadian retail sales fell by 0.7% month over month in Aug …
USD/CAD was trading higher and hits 6- week high on account of weak Canadian economic data. The pair has broken major resistance 1.2600 and jumped till 1.26290.
Canadian retail sales fell by 0.7% month over month in Aug well below forecast of 0.3% increase and core CPI came at 0.2% month –over –month below expectations of 0.3%. The weak data will stop the further increase of interest rate by BOC. The policy divergence between BOC and US Fed will take the USD/CAD to next level till 1.2660/1.27780.
The crude oil prices are trading strong on increasing geo political tensions in Iraq. The oil has closed well above $52 and 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.
