FxWirePro: USD/CAD trades higher on weak crude oil, good to buy on dips
Canadian dollar is trading lower against all major pair for the past two days on account of weak oil prices. Loonie jumped sharply till 1.35376 after forming minor bottom around 1.34263 yesterday. It is currently trading…
Canadian dollar is trading lower against all major pair for the past two days on account of weak oil prices. Loonie jumped sharply till 1.35376 after forming minor bottom around 1.34263 yesterday. It is currently trading around 1.35079
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Crude oil declined sharply almost $3 in the past two trading sessions after U.S EIA shows a surprise build up in commercial crude oil stocks to 513.2 million barrels this week. The refined product inventories were now back above 2016 levels and above 5- year average. Crude oil prices dropped till $45.19 from the high of $48.37 on Jun 6th 2017.
USD/CAD is facing strong resistance around 1.35469 (Jun 2nd 2017 high) and any break above will take the pair till 1.35820 (200 – 4H MA)/1.36377 (61.8% retracement of 1.37905 and 1.33935).
On the lower side, minor support is around 1.3480 (21- 4 H MA) and any break below will drag the pair till 1.3410/1.3380 (May 25th 2017).
It is good to buy on dips around 1.35000 with SL around 1.34450 for the TP of 1.3635/1.3680.
