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FxWirePro: USD/CAD hits low of 1.31270 after better than expected Canada manufacturing sales, slight weakness in crude oil weighs

USDCAD hits low of 1.31270 on Friday after better than expected Canada manufacturing sales. Canadian manufacturing sales came at 0.2% compared to forecast of 0.1% . The gains in the sales were led by transport equipment. Canadian dollar was trading weak and hits 4 -month low on account of huge plunge in crude oil prices. The pair hits high of 1.32636 and shown a decline of over 100 pips from that level. It is currently trading around 1.31680.

 

Brent crude has shown huge decline of more than 25% from the high on account of increase in supply from Saudi and also continuous increase in US crude oil inventory. It hits low of $64.69 and is currently trading around $66.91.

 

The near term resistance is around 1.3200 and any break above targets 1.32661 (78.6% fib)/1.3300.

 

On the lower side , major support is around 1.3135 (20- day MA) and any close below targets 1.3070/1.3050 (89- day EMA).

 

It is good to buy on dips around 1.3135 with SL around 1.3070 for the TP of 1.3260.

 

 

 

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