• USD/CAD recovered more than 250 pips from the low of 1.26230 after dovish BOC monetary policy. The pair hits high of 1.28799 and is currently trading around 1.28397.
   
• The economic data released recently shows that Canadian economy is growing. The unemployment rate has declined from 6.3% to 5.9% for the month of Nov. The third quarter GDP came at slightly higher than expected at 1.7% compared to 1.6%. But Canadian dollar declined sharply after more dovish Bank of Canada monetary policy. The policy divergence between Fed and BOC is putting pressure of price of Loonie.
   
• Technically, near term major resistance is around 1.2925 (50% retracement) and any break above will take the pair to next level till 1.2980 (233- day MA)/1.3000.
   
• On the lower side, 1.2800 is acting as near term support and any break below will drag the pair to next level till 1.2760 (20- day MA)/1.2700/1.2660. It should break below 1.2600 for further weakness.
  
  It is good to buy on dips around 1.2800 with SL around 1.2755 for the TP of 1.2925/1.2980.