- 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.
