FxWirePro: USD/CAD recovers slightly on US auto tariff worries, good to buy on dips

• USD/CAD hits one –week high at 1.29221 at the time of writing from low of 1.27496 on account of slight decline in oil prices and imposition of tariffs by US on auto imports. The pair hits intraday high of 1.29221 and is currently trading around 1.29040.
   
• Mexico and Canada are currently the biggest supplier of US car imports, worth a combined $89 billion annually. If tariff comes into effect they would feel a massive amount of pain.
   
• WTI Crude oil prices has shown a minor profit booking after high of $73 level an d has declined more than 1% on fears that OPEC could lift output. It hits low of $69.77 and is currently trading around $69.79.
   
• Technically near term resistance is around 1.2925 and any convincing break above targets 1.2965/1.3000. Major bullish continuation only above 1.3125.
   
• On the lower side, near term support is around 1.2800 and any convincing break below will drag the pair down till 1.2710(61.8% fibo )/1.2660/1.2600. the minor support is around 1.28500.

It is good buy on dips around 1.29000 with SL around 1.2850 for the TP of 1.3000.