FxWirePro: USD/CAD Short term Outlook

USDCAD was one of the top performer in year 2018. The pair has jumped nearly 8% this year on account of weak oil price and dovish Bank of Canada statement. It hits high of 1.36615 and is trading around

Brent crude was trading weak and lost more than 40% from the high of $86.71. The rise in US crude production and on going trade war between US and China is putting pressure on crude oil prices. The commodity hits low of $50.29 and is currently trading around $54.31.

Loonie is expected to trade further higher in the first quarter of 2019. Overall economic growth of Canada is good and unemployment rate is at 40-year low. Canada’s GDP is growing at better rate and is 0.3% for the month of Oct compared to forecast of 0.1%. But BOC major concern which is preventing them from rate hike is oil prices.

On the higher side, near term resistance is around 1.3690 and any violation above targets 1.37934/1.4000. But RSI in monthly chart is above 50 and a jump till 1.4000 is possible.

The near term major support is around 1.34600 (23.6% fib) and any violation below targets 1.3300/1.3160. the pair should break below 1.31600 for minor weakness.

It is good to buy on dips around 1.3550 with SL around 1.34500 for the TP of 1.400.