FxWirePro: USD/CAD tumbles more than 100 pips after US Fed dovish speech, decline in crude oil weighs

USDCAD has halted its bullish run after a three days continuous upside. The pair hits 5- month high at 1.3359 and shown a massive sell-off after Fed Powell speech. Loonie hits low of 1.32422 and is currently trading around 1.326750.

Crude oil price was trading lower especially US oil has broken below $50 after weaker than expected US EIA crude inventories. The Energy Information Administration (EIA) has reported that inventories for the week to Nov 23rd has added 3.6 million barrels compared to forecast of 0.6M. US oil is currently trading around $50.31.

On the lower side, near term major support is around 1.3260 and any break below will drag the pair till 1.3230 (10 day MA)/1.3180.

The near term resistance is around 1.3320 and any convincing break above targets 1.33860 (Jun 27th 2018 high).Any break above 1.3380 confirms bullish continuation.

It is good to buy on dips around 1.3250-55 with SL around 1.3200 for the TP of 1.3380.