FxWirePro: USD/CAD trades slightly higher, jump till 1.3000 likely

As per our analysis USDCAD has shown a good recovery of more than 150 pips from low of 1.27800. The pair was trading weak for more than 10 days as new NAFATA deal and rising crude oil supported Canadian dollar.

The pair recovered slightly on account of broad based US dollar buying for past two days. The US 10 year yield hits multiyear high at 3.23%.

Crude oil has declined more than $2 from high of $76.88 made on Oct 3rd 2018 as Saudi and Russia quietly agree output rise. The near term support is around $73.38 (10- day MA) and any break below targets $71.35/$70.19.

On the higher side, near term major resistance is around 1.2945 and any break above will take the pair to next level till 1.3000/1.3054 (100- day MA). It should break convincingly above 1.3000 for further jump.

The near term support is around 1.2860 and any violation below targets 1.2800/1.2780. Any break below 1.27800 confirms bullish continuation.

It is good to buy on dips around 1.2870 with SL around 1.2800 for the TP of 1.3045.