USDCAD is consolidating in narrow range for past 10 trading days. The pair has formed minor bottom around 1.3180 and shown a minor recovery. Loonie was best performing currency in year 2018 and jumped more than 8% on account of easing crude oil price and dovish BOC. The pair has broken 1.3300 and jumped till 1.33428. It is currently trading around 1.33282.
Crude oi prices has lost nearly 2% for the day after more than 25% jump from bottom of $50.05. The decline was mainly due to global economy outlook and weak Chinese data. IMF has cut its global growth estimate by 3.5% from 3.7% for the year 2019.It is currently trading around $61.59.
On the higher side near term resistance is around 1.3400 (20- day MA) and any break above targets 1.3485/1.3500.
The near term support is around 1.3260 and any break below targets 1.3200/1.31800 (100-day MA). Any violation below 1.3180 confirms further bullishness.
It is good to buy on dips around 1.3300 with SL around 1.3250 for the TP of 1.3400.
