FxWirePro: USD/CAD trades slightly lower on strong crude oil price, good to sell on rallies
USDCAD has broken minor support 1.3050 and declined till 1.30100 at the time of writing. The pair has formed a temporary top around 1.31245 and dipped almost more than 100 pips from that level. The main reason for slight…
USDCAD has broken minor support 1.3050 and declined till 1.30100 at the time of writing. The pair has formed a temporary top around 1.31245 and dipped almost more than 100 pips from that level. The main reason for slight recovery in Canadian dollar was due to good jump in crude oil. But downside is limited due to policy divergence between Fed and BOC. It is currently trading around 1.30431.
Market eyes US Fed monetary policy meeting which is on Wednesday for further direction. Any hawkish comment by fed will increase chance of further jump in USD. Crude oil jumped almost more than 4% this week on account of Middle East tensions and healthy demand.
The near term support is around 1.3000 and any break below will drag the pair to next level till 1.2950/1.2900 level.
On the higher side, temporary formed at 1.3125 will be acting as major resistance and any break above will take the pair to next level till 1.3180/1.3225.
It is good to buy on dips around 1.3055-60 with SL around 1.3100 for the TP of 1.2955.
