USDCAD is trading in range between 1.33770 and 1.34940 for past three trading days. Lonnie shown a good recovery of more than 100 pips on account of weak oil price.Crude oil was trading weak for past 2-week and declined more than 10%. It has lost more than $2 after Trump’s tweet about US-China trade tariff. Trump made it clear that US will impose more tariffs on Chinese goods. It will hike import duty of 200bn Chinese goods from 10% to 25%. It hits high of 1.34934 and is currently trading around 1.34781.
On the lower side, near term support is around 1.3430 and any violation below target 1.3390 (20- day MA). Major weakness can be seen only below 1.3380-90. Any break below will drag the pair further down till 1.3300/1.3270.
The major resistance is around 1.35215 high made on Apr 24th and any convincing break above targets 1.3580/1.3660.
It is good to buy on dips around 1.3430 with SL around 1.3390 for the TP of 1.3520/1.3580.
