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FxWirePro: USDCAD faces strong resistance at 1.3350, good to buy on dips
Major Resistance- 1.3350
USDCAD is trading higher for 2nd consecutive days and jumped more than 75 pips despite strong CPI data from Canada. US economic data released yesterday came mixed with Jobless claims came better than expected and IHS Markit PMI was at 49.9 bellow level 50 for the first time since 2009 Sep. Canadian retail sales came unchanged at 0.0% compared to forecast of -0.2% ,while core sales m/m at 0.9% vs estimate of -0.1%. The pair hits high of 1.33393 and is currently trading around 1.33184.
The trade war got escalated after China announced tariffs on $75 billion worth of US goods by 5-10% and it will come into effect in two batches, on Sep 1st and Dec 15th. US Fed Chairman Powell has warned there might be a slowdown in the US economy due to the escalating trade war and signaled more rate cuts in the future.
On the flip side near term, support is around 1.3230 and any violation below will drag the [air to next level till 1.3180. Any major weakness only below 1.3180 and break below targets 1.3140/1.3090.
The pair is facing first resistance at 1.3350 and any break above will take the pair to next level till 1.3435/1.350.
It is good to buy on dips around 1.3260-625 with SL around 1.3200 for the TP of 1.3350/1.3380.