FxWirePro: USDCAD Trade Idea

• USD/CAD is trading higher yesterday and hits one year high on account of rising trade war tension and weak Canada manufacuring sales . Canada’s manufacturing sales declined unexpectedly in Apr. It has dipped by 1.3% for the month of Apr compared to forecast of 0.6% rise. The weak Canadian data is blow for BOC and it will prevent central bank to hold interest rates. Trade war fears and death of NAFTA are the main issues dragging Canadian dollar. The pair hits high of 1.32050 yesterday and is currently trading around 1.31770.
   
• WTI Crude oil prices has declined sharply almost $3 in previous week after China threatens duty on US crude imports.Oil is continuing to trade weak in this week and has declined 0.5% for the intraday. It is currently trading around $64.10.
   
• Technically near term resistance is around 1.32050 and any convincing break above targets 1.325/1.3300.
   
• On the lower side, near term support is around 1.3120 and any convincing break below will drag the pair down till 1.3070/1.3000.

It is good to buy on dips around 1.3120 with SL around 1.3070 for the TP of 1.3240/1.3300.

Resistance

R1- 1.3200
 

R2 –1.3245
 

R3- 1.3300

Support               
 

S1- 1.3120
 

S2-1.3070
 

S3-1.3050