- Major trend line resistance- 1.2810 (trend line joining 1.29148 and 1.28368).
- USD/CAD is trading higher for the past three days on account of weak crude oil price and broad based buying in US dollar. US dollar was trading higher against all major yesterday after better than expected US GDP data. The pair has broken major resistance 1.2845 (200- day EMA) and jumped till 1.28885. It is currently trading around 1.28882.
- Market awaits OPEC meeting to be held tomorrow for further direction.
- Crude oil prices has major decline after hitting 2-1/2 high at $59.02 on Friday. Oil prices declined on uncertainty over OPEC production extension and restart of Keystone pipeline. The commodity declined till $56.74 near 20 –day MA and shown a minor jump from that level. It is currently trading around $57.82.
- The pair has formed a minor bottom at 1.26675 and shown a jump till 1.28483. The near term major support is around 1.2660 and any minor weakness can be seen below that level. Any break below will drag the pair to next level till 1.2600/1.2500. It should break below 1.24300 for overall bearishness. The minor support is around 1.2800/1.2745.
- On the higher side, near term resistance is around 1.2928 (50% retracement of 1.3795 and 1.20613) and any violation above will take the pair to next level till 1.300. Major bullishness can be seen only above 1.3000.
It is good to buy on dips around 1.2850 with SL around 1.27980 for the TP of 1.2928/1.3000.
