FxWirePro: USDCAD Trade Idea

USD/CAD has lost more than 100 pips from the high of 1.30673 made yesterday. US dollar was trading weak against all majors after US-Mexico has reached trade deal.Trump speaking from oval office mentioned that US and Mexico reach a preliminary trade deal which will replace NAFTA. Canadian PM Turdeau phones Trump to discuss trade. This is positive sign for Canadian dollar. USDCAD hits low of 1.29271 and is currently trading around 1.29285.

WTI crude has shown a recovery of more than $5 from the low of $64.58. It hits high of $69.93 on account of Iran sanctions and weaker than expected EIA crude inventory. It is facing strong resistance at $70.01 50% fib and any break above targets $71.25. It is currently around $69.07.

On the higher side, near term resistance is around 1.3000 and any break above targets 1.3070/1.3100/1.3131 (50- day MA)/1.3715.

The near term support is around 1.2950 and any break below targets 1.2900/1.2855.

It is good to sell on rallies around 1.2965-70 with SL around 1.3000 for the TP of 1.2855/1.2800.

Resistance

R1- 1.2980
 

R2 - 1.3000
 

R3- 1.3070

Support               

S1- 1.2920

S2- 1.2860

S3- 1.2800