FxWirePro: USD/CAD trades higher on weak crude oil price, good to buy on dips
Canadian dollar declined sharply after two consecutive drop in crude oil prices. The pair recovered after making a low of 1.24168 on Sep 29th 2017. It is currently trading around 1.25214. WTI crude oil prices declined sh…
Canadian dollar declined sharply after two consecutive drop in crude oil prices. The pair recovered after making a low of 1.24168 on Sep 29th 2017. It is currently trading around 1.25214.
WTI crude oil prices declined sharply after hitting high of $52.83 on Sep 28th 2017 on oversupply concerns. US oil dipped till $50.05 and is currently trading around $50.42.
Loonie hits high of 1.25194 yesterday after forming a temporary bottom at 1.2060.The pair upside is capped on strong crude oil prices. WTI crude jumped till $52.83 on increasing tension in Iraqi Kurdistan.
On the higher side, near term resistance is around 1.2520 (55- day EMA) and any convincing close above will take the pair to next level till 1.2600/1.266 (Aug 31st 2017 high).
The near term support is around 1.2417 (34- day EMA) and any break below will drag the pair down till 1.23600/1.23000.
It is good to buy on dips around 1.2470 with SL around 1.2417 for the TP of 1.2600/1.2660.
