FxWirePro: USD/CAD Trade Idea

USD/CAD was trading higher and hits 18- month high on account of declining crude oil prices and weak Canadian economic data. Canadian manufacturing sales came at -0.1% in Oct to $58.2 billion compared to forecast of 0.4%.pair hits intraday high of 1.34200 and currently trading around 1.3443.

WTI crude oil price has declined more than 8.5% and hits fresh low of $57.17 on increasing US oil supply. API report shows increase in crude oi inventory build of 3.45 million barrels compared to forecast of 2.475 million barrels.It is currently trading around $46.61.

On the lower side, near term major support is around 1.3320 and any break below will drag the pair till 1.3250/1.3160.

The pair is facing major resistance around 1.3500 and any break above targets 1.3585/1.3600 is possible.

It is good to buy on dips around 1.3400 with SL around 1.3345 for the TP of 1.3600.

Resistance

R1- 1.3500

R2 - 1.3580

R3- 1.3625

Support               

S1- 1.3370

S2- 1.3320

S3- 1.3300