FxWirePro: USD/CAD Trade Idea

• Loonie is showing a minor weakness after a 200 pips jump from the low on account of US trade war with other countries. IMF report on Canada shows that in 2018 growth in Canada is expected to decline due to “significant risks, domestic and external”. The major domestic risk is sharp correction in housing market. Failure to reach NAFTA agreement within stipulated time frame will affect investment and growth of Canada for longer period. US has imposed import tariff on steel and aluminum product on EU, Mexico and Canada. US commerce secretary Wilbur Ross said EU companies would face 25% duty on steel and 10% duty on aluminum. The pair hits high of 1.28998 and started to decline slightly from that level. It is currently trading around 1.29870.
   
• WTI Crude oil prices has shown a major decline of more than $8 on account of rising US crude production and rising OPEC supplies. In March US crude production has jumped to 215000 bpd to 10.47 million bpd , new monthly record. It is currently trading around $64.49.
   
• Technically near term resistance is around 1.3000 and any convincing break above targets 1.3050/1.3080.Major bullish continuation only above 1.3125.
   
• On the lower side, near term support is around 1.2880 and any convincing break below will drag the pair down till 1.2850/1.2800.

It is good to buy on dips around 1.2920 with SL around 1.2860 for the TP of 1.3120.             

Resistance

R1- 1.3000
 

R2 –1.3050
 

R3- 1.3120

Support               
 

S1- 1.2900
 

S2-1.2850
 

S3-1.2800