USD/CAD shown a massive recovery of more than 100 pips from low of 1.31599 as US China trade truce fades. Markets eye Bank of Canada monetary policy for further direction.Bank of Canada is expected to interest rate unchanged at 1.75% as expected. The minor decline in Canadian economy and huge sell-off in oil price.Alberta’s decision to cut oil production will have impact on Canadian economy. According to Bank of Montreal economists predicted on Monday that GDP would expand by 1.8% instead of 2%. The pair jumped till 1.32950 and currently trading around 1.32921.
Brent crude oil price has recovered more than 10% on hopes of production cuts by OPEC in the meeting on Dec 6th 2018 in Vienna. It hits high of $63.55 and is currently trading around $61.53.
On the lower side, near term major support is around 1.3220 and any break below will drag the pair till 1.3170 (200-4H MA)/1.3130.
The near term resistance is around 1.3300 and any convincing break above targets 1.3385 (Jun 27th 2018 high).Any break above 1.3380 confirms bullish continuation.
It is good to buy on dips around 1.3260-65 with SL around 1.3200 for the TP of 1.3385.
