USDCAD has shown a massive recovery of more than 100 pips from low of 1.32060 and hits 4-week high on broad-based US dollar buying and weak crude oil prices. The renewed trade war between the US and the EU is putting pressure on the Canadian dollar. US economic data ISM manufacturing data showed that the economy is in contraction and markets eye ISM services PMI for further direction. It hits high of 1.33525 and is currently trading around 1.33
WTI crude oil is trading lower for 2nd consecutive day and lost more than $2 on weaker than expected US crude oil inventory. It hits an intraday low of $51.89 and is currently trading around $52.02.
On the flip side, near term support is around 1.3300 and any violation below will drag the pair till 1.3260/1.3180. Major weakness only below 1.3135.
The near term resistance is at 1.3385 and any break above targets 1.3435/1.3450.
It is good to buy on dips around 1.3320-25 with SL around 1.3260 for the TP of 1.3435.
