FxWirePro: USD/CAD trade idea

• USD/CAD recovered sharply almost more than 250 pips from the low of 1.25275 made on Apr 17th 2018. Loonie jumped mainly due to weak economic data. The pair hits high of 1.27840 and is currently trading around 1.28070.
   
• Canadian core retail sales excluding autos came unchanged compared to forecast of 0.4% growth and CPI also failed to meet expectations. The weak set data’s released on Friday reduced chance of further rate hike.
   
• WTI Crude oil prices declined slightly almost $2 on account of increasing rig count in US. US drillers has added 5 rigs in the week ended Apr 20th to 820 highest since Mar 2015. It is currently trading around $67.95.
   
• Technically near term resistance is around 1.2790 (55- W EMA) and any break above targets 1.2830/1.2890/1.2940. Overall bullish continuation only above 1.3125.
   
• On the lower side, near term support is around 1.2730 and any break below will drag the pair down till 1.268/1.2630/1.2550.

It is good to buy on dips around 1.2745-50 with SL around 1.2700 for the TP of 1.2825/1.2890.        

 Resistance

R1-1.2800
 

R2 –1.2825
 

R3- 1.2890

Support               
 

S1-1.2730
 

S2-1.2680
 

S3- 1.2635