FxWirePro: USD/CAD Trade Idea

USD/CAD continues to trade higher for 3rd consecutive day. The pair has broken 1.33188 after long consolidation shows that selling from 1.36648 got halted at 1.31800. Canada’s economic data released this week was slightly weaker than expected. Canadian wholesale trade fell 1% in Nov compared to 0.7% increase in Oct. Meanwhile manufacturing sales declined 1.4% in Nov compared to forecast of -0.9%.

Canadian dollar has declined further after dismal retail sales number. It came at -0.9% in month of Nov compared to forecast of -0.6% highest monthly decline in seven months.

On the higher side near term resistance is around 1.3400 (20- day MA) and any break above targets 1.3485/1.3500.

The near term support is around 1.3260 and any break below targets 1.3200/1.31800 (100-day MA). Any violation below 1.3180 confirms further bullishness.

It is good to buy on dips around 1.3300 with SL around 1.3250 for the TP of 1.3400.

Resistance

R1- 1.3400

R2 - 1.3485

R3- 1.3500

Support               

S1- 1.32500

S2- 1.3200

S3- 1.31800