FxWirePro: USD/CAD trades higher on widening 2- year yield spread, good to buy on dips

• USD/CAD has formed a temporary top around 1.27529on Friday and shown a minor decline from that level on account of weaker than expected U.S CPI data. The pair formed a minor bottom around 1.2650 and is currently trading around 1.26823.
   
• US crude oil prices jumped slightly after hitting a low of $47.95 yesterday due to higher global demand and instability in Nigeria. Market also watches geopolitical tensions between U.S and North Korea for further direction. Major support is around $47.89 (Jun 26th low) and any minor weakness can be seen below that level.
   
• US and Canadian 2 year yield spread is widening and is currently at -8.4 basis point. The yield spread and USD/CAD movement are positively correlated.
   
• Lonnie is facing strong resistance at 1.2745 (23.6% retracement of 1.27960 and 1.24194) and this confirms minor bullishness a jump till 1.2770/1.2850 (38.2% retracement of 1.3547 and 1.24132) likely.
   
• On the lower side, any break below 1.2620 confirms intraday weakness, a decline till 1.2550 /1.2527 (10- day MA) is possible.

It is good to buy on dips around                1.26500 with SL around 1.25980 for the TP of 1.27780/1.2800.