Chart pattern - Double Bottom
As per our analysis USDCAD has shown a minor jump of more than 80 pips from the low of 1.28843. It has formed almost a double bottom at 1.2880 and any further weakness only below that level. Canadian wholesale trade came at 1.5% slightly better than expected compared to forecast of 0.4%.
The senior level NAFTA trade talks is likely to happen soon according to Canadian PM Justin Trudeau. NAFTA is putting pressure on Canadian dollar.
The pair has broken minor resistance of 1.29558 (38.2% fib) and this confirms minor bullishness and a jump till 1.3000/1.30154 (Sep 19th high).
Oil prices jumped sharply almost 2% till $72 on Iran sanctions and global oil supply. It is trading above $72 and a jump till 74 is likely. The sudden jump in oil price is supporting Canadian dollar.
The near term major support is around 1.2880 and any break below will drag the pair down till 1.2845/1.2800.
It is good to buy on dips around 1.2945-50 with SL around 1.2900 for the TP of 1.3015/1.30450.
