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FxWirePro: USD/CAD trades weak on tariff headline news, good to buy on dips

  • USDCAD has dropped more than 100 pips from the one week high of 1.30670 yesterday after news from ABC news that US Treasury Secretary Steven Mnuchin urged Donald Trump to exempt Canada from steel and aluminum tariff. IMF report on Canada shows that in 2018 growth in Canada is expected to decline due to “significant risks, domestic and external”. The major domestic risk is sharp correction in housing market. Failure to reach NAFTA agreement within stipulated time frame will affect investment and growth of Canada for longer period. The pair hits high of 1.30670 and started to decline sharply from that level. It is currently trading around 1.29190.
     
  • WTI Crude oil prices has shown a minor jump of more than $1.5 dollar from yesterday’s low of $64.20 as  Venezuela supply crisis intensifies. Markets eye US crude oil inventory data for further direction. It is currently trading around $65.32.
     
  • Technically near term resistance is around 1.3067 and any convincing break above targets 1.3125.Major bullish continuation only above 1.3125. The minor resistance is around 1.2960/1.3000.
     
  • On the lower side, near term support is around 1.2880 and any convincing break below will drag the pair down till 1.2850/1.2800.

It is good to buy on dips around 1.2920 with SL around 1.2860 for the TP of 1.300/1.3045.                

                                                                                                                        

 

 

 

 

 

 

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